Registrar of Companies, Chennai, issued an adjudication order against M/s. Soundarambigai Benefit Fund Nidhi Limited for non-compliance with Section 158 of the Companies Act, 2013, which mandates the inclusion of Director Identification Numbers (DIN) in required filings. The company did not provide DINs in its financial statements attached to Form AOC-4 for the fiscal year ending March 31, 2022. Consequently, the Registrar initiated penalties under Section 172 of the Act due to the continued failure to comply with this requirement. A penalty of ₹50,000 was imposed on the company and the same amount on its officer, Mr. Kanniahreddiar Chandrasekaran, resulting in a total penalty of ₹1,00,000. The penalties must be paid online within 90 days, with an option to appeal within 60 days. Non-compliance with the order may lead to further penalties, including fines and imprisonment for the officer in default.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF REGISTRAR OF COMPANIES, TAMIL NADU, ANDAMAN & NICOBAR ISLANDS, CHENNAI
II FLOOR, C- WING, SHASTRI BHAVAN, 26, HADDOWS ROAD, NUNGAMBAKKAM, CHENNAI- 6
F.NO.ROC/CHN/ADJ/SOUNDARAMBIGAI/SEC 158/2023 DATE : 2 SEP 2024
ADJUDICATION ORDER UNDER SECTION 158 OF THE COMPANIES ACT, 2013 IN THE MATTER OF M/S. SOUNDARAMBIGAI BENEFIT FUND NIDHI LIMITED
1. Appointment of Adjudicating Officer: –
The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014-Ad. II, dated 24.03.2015 has appointed Registrar of Companies, Chennai as Adjudicating Officer in exercise of the powers conferred by section 454(1) of the Companies Act, 2013 (hereinafter referred as Act or Companies Act, 2013) r/w Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
2. Company: –
Whereas the company viz M/s. Soundarambigai Benefit Fund Nidhi Limited with CIN: U65999TN2017PLC115408 (herein after referred as ‘company’ or ‘subject company’) is a registered company with this office under the Companies Act, 2013 having its registered office as per MCA21 Registry at No.7/11A, East Mada Street, Kovur, Kancheepuram, Chennai-600128. The financial & other details of the subject company as available on MCA-21 portal is stated as under:
| S.No. | Particulars | Details |
| 1. | Company’s Status | Active |
| 2. | Filing Position | Financial Statement: Up to 31.03.2023 |
| 3. | Paid up Capital | Annual Return: Up to 31.03.2023 |
| a. Revenue from Operation | Rs.59,34,700/- | |
| b. Other Income | Rs.16,343,243/- | |
| c. Profit/Loss for the Period | Rs.1,599,099/- | |
| 4. | Whether it is a Holding Company | Rs.234,962/- |
| 5. | Whether it is a Subsidiary Company | No |
| 6. | Whether company registered under Section 8 of the Act? | No |
| 7. | Whether company registered under any other special Act? | No |
3. Directors During the period of violation:
| S.No. | Name of Director Default | Designation | Date of Appointment | Date of Cessation |
| 1. | Mr. Kanniahreddiar Chandrasekaran | CFO (KMP) | 10.03.2017 |
4. Section/Rule and Penal Provision as per Companies Act, 2013
Section 158. Obligation to Indicate Director Identification Number
Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.
Section 172. Penalty
” If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.”
5. Issue of Adjudication Notice:
The Ministry vide order dated 28.06.2023 rejected the form NDH-4 (Form for filing application for declaration as Nidhi and for updation of Status by Nidhi) filed by the company M/s. Soundarambigai Benefit Fund Nidhi Limited (vide SRN: R28895563 Dt 01.01.2020) wherein it was mentioned that “the Directors Identification Number (DIN) of the directors are not mentioned in the financial statements attached with Form AOC-4 for 31.03.2022, resulting in violation of Section 158 of the Companies Act, 2013.
After that the Adjudicating Authority had issued Adjudication Notice No. ROC/CHN/SOUNDRAMBIGAI/ADJ/2023 dt 31.08.2023 to the company.
6. Reply of Company and Directors for Adjudication Notice issued:
No reply has been received from the company and its directors.
7. Adjudication Hearing:
Since no reply has been received from the company and its directors for the Adjudication notice dated 31.08.2023. The Adjudicating Authority had issued notice of hearing dt 26.06.2024 by fixing the hearing on 09.07.2024 at 11:30 AM. No reply received for the hearing notice dated 26.06.2024 and neither the authorized representative of the company nor the Directors attended the hearing on 09.07.2024. Hence, as per Rule 3(8), Companies (Adjudication of Penalties) Rules 2014, the matter is being proceeded with in the absence of such persons (ex-parte).
8. Analysis of Non- compliance of the Companies Act, 2013:
It is noticed that the director’s DIN was not mentioned in the signed financial statements attached with Form AOC-4 for the financial year ending on 31.03.2022. Therefore, the company has contravened Section 158 of the Companies Act, 2013 and the company and its Officer in default are liable for penalty under Section 172 of the Companies Act, 2013.
The company being a Nidhi company does not fall under the definition of small company as per provision of section 2(85) of the companies Act, 2013. Therefore, imposing the provision lesser penalty as per section 446(b) shall not be applicable in this case.
9. Decision
Having considered the facts and circumstances of the case and after taking into account it is concluded that the company has not mentioned the Director’s DIN in the attachment of form AOC-4 for the financial year ending on 31.03.2022. Thereby violated Section 158 of the Companies Act,2013.
Accordingly, I am inclined to impose a penalty as prescribed under Section 172 of the Companies Act, 2013. The details of the penalty imposed on the Company and Officers in default are shown in the table below:
| Name of company/ Officers in default | Penalty for default (Rs) | Maximum Limit for penalty (Rs) | Penalty Imposed (Rs) |
| M/s. Soundarambigai Benefit Fund Nidhi Limited |
Rs.50,000 + Rs.500 per day (for continuing failure) | Rs.3,00,000/- | Rs.50,000/- |
| Mr.Kanniahreddiar Chandrasekaran | Rs.50,000 + Rs.500 per day (for continuing failure) | Rs.1,00,000/- | Rs.50,000/- |
Therefore, in view of the above said violation, in exercise of the powers vested to the undersigned under Section 454(1) & (3) of the Companies Act, 2013 a penalty of Rs.50,000/- (Rupees Fifty thousand) is imposed on the Company and Rs.50,000/- (Rupees Fifty thousand) is imposed on the Officer in default as mentioned above. Totally Rs.1,00,000/- (Rupees One lakh) as penalty amount for violation of Section 158 of the Companies Act, 2013.
10. The said amount of penalty shall be paid through online by using the website mca.gov.in (Misc. head) within 90 days of receipt of this order and intimate this office with proof of penalty paid.
11. Whereas Appeal against this order may be filed with the Regional Director (SR), Ministry of Corporate Affairs, 5th Floor, Shastri Bhavan, 26 Haddows Road, Chennai-600006, Tamil Nadu within a period of sixty days from the date of receipt of this order, in 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 Act read with Companies (Adjudicating of Penalties) Rules, 2014].
12 Your attention is also invited to section 454(8) of the Act in the event of noncompliance of this order, “(8)(i) Where company fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be within a period of ninety days from the date of the receipt of the copy of the order, 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.
13. Where an officer of a company or any other person who is in default fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be within a period of ninety days from the date of the receipt of the copy of the order, such officer shall 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 with both.”
(B. SRIKUMAR, ICLS)
REGISTRAR OF COMPANIES
TAMILNADU, CHENNAI.
ADJUDICATING OFFICER
