Second DIN Obtained: Section 155 Violated- MCA Imposes Penalty

Registrar of Companies, Jaipur, imposed a penalty of ₹1,60,640 on Shri Sunil Kumar Sharma for violating Section 155 of the Companies Act, 2013, which prohibits holding multiple Director Identification Numbers (DINs). Sharma initially obtained DIN 06910635 on June 28, 2014, and a second DIN 08481660 on June 13, 2019, for various companies. Despite his application to surrender the second DIN, the violation from June 13, 2019, to August 7, 2024, led to a penalty calculated at ₹10,000 plus ₹80 per default day. The penalty must be paid online within 90 days. Sharma’s request for a minimum penalty was noted, and the adjudicating officer has set the total penalty at ₹1,60,640. An appeal against this decision can be filed within 60 days with the Regional Director (NWR), Ahmedabad. Non-payment of the penalty may result in fines or imprisonment as outlined in the Companies Act, 2013.

Government of India
Ministry of Corporate Affairs
Office of Registrar of Companies cum Official Liquidator
Attached to Rajasthan High Court, Jaipur Bench at Jaipur
Corporate Bhawan, G/6-7, Residency Area, Civil Lines, Jaipur – 302001

Order for Penalty under Section 454 of the Companies Act, 2013 Read with Companies (Adjudication of Penalties) Rules, 2014 And Companies (Adjudication of Penalties) Amendment Rules, 2015 For the Violation of Section 155 of the Companies Act, 2013 In the Matter of:

01. Shri Sunil Kumar Sharma …. Respondent

Date of hearing — 23.08.2024

Present: –
1. Shri Ruvit Kumar, ROC-Cum-OL, Rajasthan, Jaipur
2. Shri Raunak Agrawal, AROC-cum-AOL, Rajasthan, Jaipur
3. Shri Vimal Kumar Gupta, Practicing Company Secretary and authorized representative of the Respondent.

ADJUDICATION ORDER

1. Appointment of Adjudicating Officer: –

WHEREAS the Ministry of Corporate Affairs vide its Gazette Notification No. SO 831 (E) dated 24.03.2015 appointed the Registrar of Companies/undersigned as Adjudicating Officer in exercise of the Power conferred by Section 454 of the Companies Act 2013 read with Companies (Adjudication of Penalties) Rules, 2014. The Registrar of Companies vide the Companies (Amendment) Act, 2019 is entrusted with power to adjudicate penalty as provided under Section 159 of the Companies Act, 2013.

2. Respondent Person:

WHEREAS Shri Sunil Kumar Sharma (initial Director Identification Number 06910635) residential on H-134, Malhotra Nagar, Behind Vidhyadhar Nagar Stadium, Vidhyadhar Nagar, Jaipur, Rajasthan- 302039.

3. Relevant provisions of the Companies Act, 2013: –

WHEREAS as per the provision of section 155 of the Companies Act, 2013 “No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.”

WHEREAS as per provision of section 159 of the Companies Act, 2013 “if any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.”

4. Facts of the Case:

• That the Respondent namely Shri Sunil Kumar Sharma has filed a suo-moto adjudication application to this office on 21.08.2024 for the adjudication of violation of section 155 of the Companies Act, 2013 stating that the Respondent has obtained its initial Director Identification Number (DIN) i.e. 06910635 on 28.06.2014 from the Ministry of Corporate Affairs.

Shri Sharma has further stated that he also inadvertently obtained another/second Director Identification Number (DIN) i.e. 08481660 on 13.06.2019 from the Ministry of Corporate Affairs and the same is associated with the companies namely Oan Industries Limited (CIN-U20119RJ2019PLC065299), Oan Chemicals Private Limited (CIN-U24319RJ2021PTC078424), Suparna Buildcom Private Limited (CIN- U70101RJ2014PTC045957), Oan Foods Private Limited (CIN-U10719RJ2020PTC072441) and Oan Logistics Private Limited (CIN- U52241RJ2024PTC094185).

Further, Shri Sharma has applied for surrender of latest DIN i.e. 08481660 to the Ministry of Corporate Affairs vide SRN AA9647184 dated 08.08.2024 in e-Form DIR- 5. The above e-Form has come into the re-submission from the Ministry of Corporate Affairs with instruction to adjudicate the matter for consideration of the application/e-Form DIR-5.

• Further, the Respondent namely Shri Sunil Kumar Sharma vide letter dated 22.08.2024 requested Competent Authority to hear the matter as soon as possible as the last date of re-submission of above e-Form DIR-5 is 29.08.2024. The above request has been considered by the Competent Authority and the date of hearing in the matter has been granted/fixed on 23.08.2024.

Further, at the time of hearing, Shri Vimal Kumar Gupta, Practicing Company Secretary and authorized representative of the Respondent appeared in the matter and submitted that the default has already been made good by applying surrender of latest DIN with the Ministry of Corporate Affairs vide SRN AA9647184 dated 08.08.2024 in e-Form DIR-5 and requested Competent Authority to impose a minimum penalty in the matter.

• In view of the above facts, the undersigned has reasonable cause to believe that the provision of section 155 of the Companies Act, 2013 has not been complied with by the Respondent during the period from 13.06.2019 to 07.08.2024 and therefore liable for penal action under section 159 of the Companies Act, 2013. Accordingly, in exercise the power of 454 (3) of the Companies Act, 2013, 1 inclined to impose a penalty on the Respondent, as under-

I am of this opinion that penalty is commensurate with the aforesaid failure committed by the Respondent and penalty so imposed upon him shall be paid from his personal sources/ income. The said amount of penalty shall be paid through online by using the website www.mca.gov.in (Misc. head) in favour of “Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi, within 90 days of receipt of this order, and intimate this office with proof of penalty paid.

5. Appeal against this order may be filed in writing with the Regional Director (NWR), Ministry of Corporate Affairs, Ahmedabad within a period of sixty days from the date of receipt of this order, in e-Form ADJ (available on Ministry website mca.gov.in setting forth the grounds of appeal and shall be accompanied by a certified copy of this order (section 454(5) & 454(6) of the Companies Act, 2013 read with Companies (Adjudicating of Penalties) Rules, 2014).

6. Attention is also invited to section 454(8)(i) and 454(8)(ii) of the Companies Act, 2013, which state that in case of non-payment of penalty amount, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees and officer in default shalt be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty five thousand rupees but which may extend to one lakh rupees or both.

7. In terms of the provisions of sub-Rule (9) of Rule 3 of the Companies (Adjudication of Penalties) Rules, 2014, copy of the order is being sent to the following: –

I. Shri Sunil Kumar Sharma

II. Regional Director, NWR, Ministry of Corporate Affairs, Ahmedabad at ROC Bhavan, Opp. Rupal Park Society, Behind Ankur Bus Stop, Naranpura, Ahmedabad, Gujarat-380 013.

(RUVIT KUMAR)
ROC-cum-OL & Adjudicating officer,
Rajasthan, Jaipur

File No. ROCJP/Adj/155/2024-25/1432 Date: 23/08/2024