The Registrar of Companies (ROC), West Bengal, issued an adjudication order on 31st January 2024, against M/s Ashapuram Nidhi Limited and its directors for failing to comply with Section 158 of the Companies Act, 2013. Section 158 mandates companies to include the Director Identification Number (DIN) in returns, reports, and other filings related to directors. During an inquiry, it was discovered that Ashapuram Nidhi Limited failed to include the DIN of its directors in the Director’s Report for the financial year ending 31st March 2018. This non-compliance, as identified under Section 158, triggered the imposition of penalties.
In response to the inquiry, the company acknowledged the mistake but claimed it was unintentional. They argued that the DIN was mentioned in subsequent financial statements for the year ending 31st March 2019. Despite this, the adjudicating officer found the company and its directors to be in violation of the law. A penalty of ₹50,000 was imposed on the company, with an additional ₹50,000 levied on each of the three directors: Madhumita Dalapati, Amit Kumar Bhunia, and Nitai Shit, resulting in a total penalty of ₹2 lakh. The company has been ordered to pay the penalty within 90 days.
Failure to pay the penalty within the stipulated time may result in further legal consequences under Section 454(8) of the Companies Act, 2013. The company and its directors retain the right to appeal the decision before the Regional Director, Ministry of Corporate Affairs, within 60 days of the order.
GOVERNMENT OF INDIA
Ministry of Corporate Affairs
Office of the Registrar of Companies (West Bengal).
Nizam Palace, 2nd M. S. O. Building, 2nd Floor
Acharya Jagadish Chandra Bose Road
KOLKATA — 700 020
Order No. ROC/ADJ/108/224919/2023/10913 Dated: 31.01.2024
ADJUDICATION ORDER FOR PENALTY U/S 454(3) OF THE COMPANIES ACT, 2013 READ WITH RULE 3 OF THE COMPANIES (ADJUDICATION OF PENALTIES) RULES, 2014 AS AMENDED BY THE COMPANIES (ADJUDICATION OF PENALTIES) RULES, 2019 IN MATTER OF NON COMPLIANCE OF THE PROVISIONS OF SECTION 158 OF THE COMPANIES ACT, 2013
In respect of: M/S. ASHAPURAM NIDHI LIMITED
CIN: U74999WB2018PLC224919
1. Appointment of Adjudicating Officer: –
Ministry of Corporate Affairs vide its Gazette Notification No A-42011/112/2014-Ad.II 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 adjudicating penalties under the provisions of this Act.
2. Company:-WHEREAS Company M/S. ASHAPURAM NIDHI LIMITED [herein after known as Company] is a registered company with this office incorporated on 06.03.2018 under the provisions of Companies Act, 1956 having its registered address at PLOT NO-273, MOUJA KALIKAKHALI, P.S- CHANDIPUR MIDNAPORE, KOLKATA, West Bengal, India, 721659 as per MCA website.
3. Facts about the Case: –
1. On the basis of Inquiry carried out u/s 206(4) of the Companies Act, 2013 the following violation are pointed out in the inquiry report:
CONTRAVENTION OF SECTION 158 OF THE COMPANIES. ACT, 2013
As per Section 158 of the Companies Act, 2013, 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.
On perusal of the financial statements for the financial year ended 31.03.2018, it is observed that the Director’s Identification No. (DIN) of the Directors have not been mentioned in the Director’s Report. Therefore, there is a violation of the provisions of Section 158 of the Companies Act, 2013 for the financial year ended 31.03.2018.
Reply of the Company:
The subject company in its reply has stated that the DIN is mentioned in financial statement for the financial year ended 31/03/2018. Also, DIN is mentioned in the Directors Report and financial statement for the financial year ended 31/03/2019. So due to unintentional mistakes DIN was not mentioned in the Directors Report ending 31/03/2018. Sir, it is our earnest request to you if you please consider our unintentional mistake and not treat the same as a contravention of Section 158 of Companies Act, 2013 as this is not a regular practice.
2. Section 158: 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 the director.
Section 172: If a company is in default in complying with the requirements of this section 158, 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.
3. Accordingly, the adjudication officer has issued adjudication notice vide No. ROC/ADJ/108/224919/2023/9419/9423 dated 14.12.2023 (herein after referred as Adjudication Notice) under Section 454(4) read with Section 158 Of the Companies Act, 2013 read with Rule 3(2) of Companies (Adjudication of Penalties), 2014 as amended in Amendment Rules, 2019, to the company and its officers in default for the violation of the provisions of the Act as mentioned in para “1 & T above giving an opportunity to submit a reply as to why the penalty should not be imposed under the provisions of Section 172 of the Act against the Company and its officers in default for the above stated violations, followed by a hearing fixed on 11.01.2024 vide hearing notice No. ROC/ADJ/108/224919/2023/9839-9843 and further second hearing on 30.01.2024 vide hearing notice No. ROC/ADJ/108/224919/2023/10520-10524 dated 16.01.2024.
4. Ms. Madhumita Dalapati, director of the company has submitted his reply vide email dated 30.01.2024 and prayed for adjournment of hearing scheduled on 30.10.2024, as they were unable to attend the same due to some medical ;issues. And requested 30 days extension to provide sufficient clarification on the matter.
5. On 30th January 2024, the director of the company vide email reiterated hisiearlier reply dated 10th January 2024, wherein it is stated that the DIN in the Directors Report of Financial Year 2018 was not provided due to unintentional mistake. And she could not attend the physical hearing due to some medical issue. And sort 30 days’ time. The matter was fixed for hearing twice and considering frequent extensions is not feasible, as it prevails in reply in Inquiry Report and current stand in the aforesaid references. The matter heard and order is reserved as under:
ORDER
1. The applicant company and its officers, who have defaulted the provisions of Section 158 of the Companies Act, 2013 shall be liable under Section 172 of the Companies Act, 2013.
2. In exercise of the powers conferred vide Companies (Amendment) Ordinance, 2019, the undersigned is entrusted to adjudicate penalties under section 1721of the Companies Act, 2013. After taking into account the factors mentioned herein above, I do hereby impose the penalty of Total Rs. 2,00,000 (Rupees Two Lakhs and Fifty Thousand only) e., Rs. 50,000/- (Rupees Fifty Thousand only) on the Company and Rs. 50,000/- (Rupees Fifty Thousand only) on each its Director-in-default pursuant to Rule 3(12) of Companies (Adjudication Of Penalties) Rules, as per table below for violation of section 158 of the Act:
| Name of the Applicant Company/ Director | No. of years | Amount of Default (in Rs.) | Total maximum Penalty imposed (in Rs.) |
| M/S. ASHAPURAM NIDHI LIMITED (company) | 2017-18 | 50,000 | 50,000 |
| Ms. MADHUMITA DALAPATI (director) | 2017-18 | 50,000 | 50,000 |
| Mr. AMIT KUMAR BHUNIA (director) | 2017-18 | 50,000 | 50,000 |
| Mr. NITAI SHIT (director) |
2017-18 | 50,000 | 50,000 |
3. The noticee shall pay the said amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment [available on Ministry website mca.gov.in] under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 days of receipt of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this Office Address.
4. Appeal against this order may be filed in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata located at Nizam Palace, 2nd M. S. 0. Building, 3rd Floor, 234/4, A.J.C. Bose Road, Kolkata-700020, West Bengal within a period of sixty days from the date of receipt of this order, in Form ADJ [available on Ministry website www.mca.govinl setting forth the grounds of appeal and shall be accompanied by a certified copy of the this order. [Section 454(5) & 454(6) of the Act read with the Companies (Adjudicating of Penalties) Rules, 2014].
5. Your attention is also invited to section 454(8)(i) & (ii) of the. Act regarding consequences of non-payment of penalty within the prescribed time limit of 90 days from the date of the receipt of copy of this order.
6. In terms of the provisions of sub-rule (9) of Rule 3 of Companies (Adjudication of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019, copy of this order is being sent to M/s ASHAPURAM INIDHI LIMITED and the director in default mentioned herein above and also to Office of the. Regional Director (Eastern Region) and Ministry of Corporate Affairs at New Delhi.
[A. K. Sethi, ICLS]
Adjudicating Officer & Registrar of Companies,
West Bengal
