The Registrar of Companies, Kanpur, acting under Section 454 of the Companies Act, 2013, imposed penalties on a private company and its officers for failure to comply with Section 134(1), which mandates that financial statements must be signed by directors before filing. An inquiry under Section 206(4) revealed that the company had filed unsigned financial statements for multiple years, including FY 2019–20. The company admitted the default in response to the show cause notice. Although it sought reduced penalties under Section 446B claiming small company status, penalties were still imposed. However, directors who were not associated with the company during the period of default were not penalized. The company was fined ₹1.5 lakh, while responsible officers were fined ₹25,000 each. The order directed payment within 90 days and provided a right to appeal within 60 days.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Uttar Pradesh I
2nd Floor, Kendriya Bhawan, GPOA Building, Fazalganj, Kanpur, Uttar Pradesh, India, 208012
Phone: 0512-2310443
E-mail: roc.kanpur@mca.gov.in
Order ID: PO/ADJ/04-2026/UP/02020 Dated: 20/04/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 134(8) OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 831(E) dated 24/03/2015 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to KANCHAL FARM LAND PRIVATE LIMITED [herein after known as Company] bearing CIN U70102UP2012PTC051969, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at 3RD FLOOR, A- BLOCK SURAJDEEP COMPLEX 1-JOPLING ROAD NA LUCKNOW UTTAR PRADESH INDIA 226001
Individual details:
In the matter relating to AMIT KANCHHAL ——–
In the matter relating to SATYAJEET SINGH——-
In the matter relating to RAHUL AWASTHI ——-
In the matter relating to SACHIN KANCHHAL ——-
In the matter relating to APARNA AGARWAL——-
C. Provisions of the Act:
(8) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – The Ministry vide its letter no. F.No. CL-II-07/477/2021-O/o DGCoA-MCA dated 13.01.2022 and the Directorate vide its letter no. RDNR/COMP/UP/KANCHAL FARM LAND/2021/2933 dated 02.02.2022 directed to conduct the Inquiry u/s 206(4) of the Companies Act 2013, against the said company and submit a report. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ? It has been observed from the MCA21 Registry that the financial statements uploaded by the Company for the financial year ended 31.03.2018, 31.03.2019 ,31.03.2021 have not been signed by the Directors of the Company. The reply of the Company is not tenable. They have admitted to their mistake of not signing the financial statements for the financial year ended 31.03.2018, 31.03.2019, 31.03.2021. Hence it is non-compliance of Section 134(1) of the Companies Act,2013. The penal action as contemplated under Section 134(8) of the Companies Act, 2013 to be initiated against the Company and its officers in default for the financial year ending 31st March 2020 for violation of Section 134(1) of the Companies Act, 2013?. The said violation was reported by the Inquiring Officer in his report dated 29.04.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/88/2024-O/o DGCoA-MCA dated 13.12.2024 directed this office to take necessary action for non-compliance/violation of section 134(1) of the Companies Act, 2013 for the financial year 31.03.2020.
2. E- hearing scheduled on 24.03.2026
E. Order:
1. This office issued Show Cause Notice on 26.06.2025 to the company and every officer of the Company who is in default for uploading the financial statements of the Company for the financial year ending 31.03.2020 without the signature of the Directors of the Company. In response, thereof reply was submitted wherein it has been admitted that the directors of the Company have not signed the financial statements for the financial year ended 31.03.2020, which is non-compliance of Section 134(1) of the Companies Act,2013.
Mr. Indrajeet Yadav (Company Secretary in practice) appeared on behalf of the Company on 24.03.2026 through VC and requested to treat the company as Small Company and reduce the penalty as per section 446B of the companies Act 2013. Mr. Indrajeet Yadav further submitted that SATYAJEET SINGH having DIN as 02804711 has been appointed as director with effect from 31.01.2025, Shri Rahul Awasthi having DIN as 10923226 has been appointed as director with effect from 31.01.2025, and APARNA AGARWAL having DIN as 06626227 has been appointed as director with effect from 28.06.2021 who were not associated with the Company at the time of non-compliance. Same was verified from document filed by the Company on MCA 21 registry. The turnover of the company for the FY ending 31.03.2020 was Rs 73,17,850 and share capital of the company was Rs 1,00,000/. Shri Ramesh Kumar Pal (AROC) was also present during the hearing.
In the aforesaid circumstances, penalty as applicable is being imposed upon the company and every officer of the Company who were in default as per Section 134 (8) of the Companies Act, 2013 for the FY 31.03.2020.
2. The details of penalty imposed on the company, officers in default and others are shown in the table below:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required
(C) |
Penalty Amount
(D) |
Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | KANCHAL FARM LAND PRIVATE LIMITED having CIN as U70102UP2012P TC051969 | 150000 | 0 | 300000 | |
| 2 | AMIT KANCHHAL having DIN as 01147459 |
25000 | 0 | 50000 | |
| 3 | SATYAJEET SINGH having DIN as 02804711 | 0 | 0 | 50000 | |
| 4 | RAHUL
AWASTHI having DIN as 10923226 |
0 | 0 | 50000 | |
| 5 | SACHIN KANCHHAL having DIN as 01334397 |
25000 | 0 | 50000 | |
| 6 | APARNA AGARWAL having DIN as 06626227 |
0 | 0 | 50000 |
3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.
4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.
5. Appeal against this order may be filed in writing with the Regional Director, RD Delhi within a period of sixty days from the date of receipt of this order, in Form ADJ setting for the grounds of appeal and shall be accompanied by a certified copy of this order [Section 454 (5) & 454 (6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].
6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.
Sanjay Bose,
Registrar of Companies
ROC Kanpur
