F.No:9/68/ADJ/SEC. 203/2013/ANDHRA PRADESH /RD(SER)/2022/6075
BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION
MINISTRY OF CORPORATE AFFAIRS, HYDERABAD
IN THE MATTER OF COMPANIES ACT, 2013
IN THE MATTER OF PINNACLE HOSPITALS INDIA PRIVATE LIMITED
1. M/s. Pinnacle Hospitals India Private Limited
2. Mr. Venkateswara Prasad Kondragunta, Managing Director
3. Mr. Kishore Ragam, Director
4. Mr. Anand Kumar Kondragunta, Director
5. Mr. Arun Kumar Kondragunta, Director
6. Mr. Ragam Satya Govind, Director
7. Mr. Seshu Ragam, Director
Appellants
Date of hearing : 10.11.2022
Present : Mr. Nolabjo Chakraborty, Practicing Company Secretary
ORDER
This is an appeal filed under section 454(5) of the Companies Act, 2013 by the above appellants in e-form ADJ vide SRN F27918093 dated 07.10.2022 against the adjudication order No. ROC(V)/ADJ(454)Sec.203(5)/SSNR/2022-23/1122 dated 10.08.2022 under section 454 passed by the Registrar of Companies, Andhra Pradesh for default in compliance with the requirements of Section 203 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
2. Registrar of Companies in his order of adjudication has stated that that the company has failed to appoint Whole Time Company Secretary after the cessation of previous Company Secretary on 01.11.2021 and thereby violated the provisions of Section 203 of the Companies Act, 2013. Hearing was held before Registrar of Companies on 10.08.2022 and after hearing to the authorised representative, Registrar of Companies had levied a penalty of Rs.5.00 Lakhs on Company and Rs.50,000/- each on five Appellants (i.e. Mr. Venkateswara Prasad Kondragunta, Managing Director, Mr. Kishore Ragam, Director, Mr. Anand Kumar Kondragunta, Director, Mr. Arun Kumar Kondragunta, Director, Mr. Ragam Satya Govind, Director and Mr. Seshu Ragam, Director.
3. An opportunity of being heard was given to the Appellants on 10.11.2022. The authorized representative Mr. Nolabjo Chakraborty, Practicing Company Secretary (authorized representative) appeared on behalf of the appellants and reiterated the submissions made in the appeal and also stated that the Company is always compliant and never defaulted in appointing Whole Time. Company Secretary. The last Company Secretary was there upto 01.11.2021 and the present Company Secretary appointed on 01.07.2022. Some procedural time in selecting a competent Company Secretary suitable for Company Secretary if post has been spent, keeping in mind the provisions of law. Further after the Covid-19 pandemic no Company Secretary from far of places shown interest to come and join in a hospital business as the company is engaged in Covid-19 pandemic related treatment. Authorised representative requested to waive the penalty as no mens rea could be proved on the part of the Company and its officers in charge.
4. From the perusal of the papers submitted by the Company, orders pasied by Registrar of Companies, Andhra Pradesh as well as oral submissions made, Registrar of Companies while passing the orders has not taken into consideration any of the aspects and passed the order in a mechanical manner. Further it is observed that no submissions of the authorized representative has been recorded by the Registrar of Companies while passing the order of imposing penalty.
5. In the light of the above submissions, the order passed by the Registrar of Companies is set aside and matter is returned back to Registrar of Companies for taking necessary suitable action in the context as stated above. This application is disposed off accordingly.
7. The Appellant Company is directed to file a copy of this order with Registrar of Companies, in Form INC-28 within 30 days.
Issued under my hand and seal on this the 16th day of January 2023.
(B. MOHANTY)
REGIONAL DIRECTOR(SER)
HYDERABAD
