The Registrar of Companies, Mumbai, issued an adjudication order under Section 454 of the Companies Act, 2013, for violation of Section 155, which prohibits holding multiple Director Identification Numbers (DINs). The individual had been allotted a first DIN in 2018 but inadvertently obtained a second DIN in 2023 during company incorporation, resulting in non-compliance. A suo motu adjudication application was filed in 2026, admitting the default and asserting absence of fraudulent intent. The authority acknowledged the bona fide nature of the error but emphasized that the provision imposes strict liability regardless of intent. The period of default was calculated from March 31, 2023, to March 24, 2026, totaling 1,090 days. A penalty of ₹25,000 for the initial default and ₹22 per day for the continuing default was imposed, aggregating to ₹48,958. The order reinforces that even unintentional violations attract penalties, though voluntary disclosure may influence penalty quantum.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Mumbai I
100, Everest, Marine Drive, Mumbai, Maharashtra, India, 400002
Phone: 022-22812627
E-mail: roc.mumbai@mca.gov.in
Order ID: PO/ADJ/04-2026/MH/01950 Dated: 27/04/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 159 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 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 . Individual details:
In the matter relating to YUICHIRO ABE ——
C. Provisions of the Act:
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.
D. Facts about the case:
1. Default committed by the officers in default/noticee – Whereas, the Registrar of Companies, Mumbai-I (hereinafter referred to as the ROC, Mumbai I) is in receipt of a suo-motu Adjudication Application dated 16.01.2026 submitted by Mr. Yuchiro Abe (hereinafter referred to as the Applicant) under Section 454 read with Section 159 of the Companies Act, 2013 for default under Section 155 of the Act on account of obtaining duplicate Director Identification Number (DIN).
Whereas Section 155 of the Act reads as follows:
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 the Applicant stated that he had applied for and was allotted the first DIN:08056317 on 18.01.2018 . Further, the applicant admitted in his application that at the time of incorporation of Company namely Star Union Dai-ichi Life Insurance Company Ltd, he inadvertently applied for and was allotted second DIN: 10097254 on 31.03.2023. Thus, the Applicant was in possession of two DINs in contravention of the provisions of Section 155 of the Companies Act, 2013.
The Applicant is requested to submit the details of E-form DIR-5 for surrender of duplicate DIN, if any.
2. The Noticee did not request for an E- hearing. The Adjudicating officer is also of the view that no E-hearing is required in the instant case.
E. Order:
1. A Show Cause notice bearing ID: SCN/ADJ/03-2026/MH/04040 dated 24.03.2026 was issued to the Noticee on the E-adjudication portal under Section 454 read with Section 159 for default under Section 155 of the Act.
B. The Noticee replied to the said Show Cause Notice on the E-adjudication portal on 25.03.2026 and admitted the default.
C. The Noticee did not request for an E- hearing. The Adjudicating officer is also of the view that no E-hearing is required in the instant case.
D. Rule 3(12) of the Companies (Adjudication of Penalties) Rules, 2014 provides that while adjudging quantum of penalty, the adjudicating officer shall have due regard to the following factors, namely:- (a) size of the company; (b) nature of business carried on by the company; (c) injury to public interest; (d) nature of the default; (e) repetition of the default; (f) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; and (g) the amount of loss caused to an investor or group of investors or creditors as a result of the default:
E. On perusal of the documents filed, details available on MCA portal, it is observed that the applicant obtained the duplicate DIN unintentionally and upon realisation.
F. Thus, I am of the view that given the bonafide action on part of the Applicant in submitting the suo-motu adjudication application, the quantum of penalty shall be Rs.25,000/- for first default and further penalty of Rs.22/- for each day after the first during which such default continued.
G. Thus, the period of default is considered from 31.03.2023 that is the date of obtaining second DIN till 24.03.2026 that is the date of Show Cause Notice issued, which amounts to 1090 days. The Applicant shall be liable to a penalty of Rs.25,000/- for first default and Rs. 22/- for each day for 1089 days that is Rs.23,958/- aggregating to Rs. 48,958/- (Rupees Forty-Eight Thousands Nine Hundred Fifty-Eight only).
H. Now, in exercise of the powers conferred on the Adjudicating officer vide Notification dated 24th March 2015, having considered the facts and circumstances of the case, the Adjudicating Officer hereby imposes a penalty of Rs. 48,958/-(Rupees Forty-Eight Thousands Nine Hundred Fifty-Eight only) under the penal provisions of Section 159 for the default under Section 155 on the Applicant Director that is Mr. Yuchiro Abe.
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 | YUICHIRO ABE having DIN as 08056317 | NA | 48958 | 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 Mumbai 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.
Chandan Kumar,
Registrar of Companies
ROC Mumbai I
