Order for penalty for violation of section 12 of the Companies Act,2013 with respect to Magadh Spun Pipe Limited
Whereas, office of the Registrar of Companies, Bihar-cum-Official Liquidator, High Court Patna, has issued letter no. ROC/Pat/Compt/ 2091/761-765 dated 10.08.2022 to the company and its directors; however the said letter addressed to the company returned undelivered in this office with postal remarks ‘Left‘. Therefore, it appears that the company is not maintaining registered office as required under section 12(1) of the Companies Act 2013.
That, this office has issued show cause notice under section 12 of the Companies Act 2013, vide letter no. ROC/Pat/Compt/ 2091/S-12/1465-1468 dated 08.09.2022 to the company and its director but no reply has yet been received from them. Hence it appears that the provisions of Section 12 of the Companies Act, 2013 has been contravened by the company and its director and therefore they are liable for penalty u/ s 12(8) of the Companies Act, 2013.
MCA hereby impose a penalty of Rs. 100000 (one lakh) on the company and Rs. 100000 (one lakh) each on the 3 (three) directors of the company under section 12(8) of the Act for failure in compliance of section 12(1) and 12(4) of the Companies Act, 2013.
Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies, Bihar-Cum-Official Liquidator, High Court, Patna
4th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbunglow Road, Patna-800001
No.: ROC/Pat/Compt/2091/1999
Dated: 09.11.2022
Order for penalty for violation of section 12(1) r/w 12(4) of the Companies Act, 2013
M/S. MAGADH SPUN PIPE LIMITED
CIN: U27109BR1985PLC002091
Appointment of Adjudication Officer:–
1. The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014- Ad.II dated 24.03.2015 has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred under 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.
Company:–
1. Whereas, Company M/s. Magadh Spurt Pipe Limited, CIN: U27109BR1985PLC002091 (herein after known as Company) is a company incorporated on 20.01.1985 under the provisions of Companies Act, 1956/2013 in the state of Bihar and having its registered office situated at Shop No. R/4, Forth Floor, Chandi Vepar Bhawan, Exhibition Road Patna Bihar 800001, India as per MCA website.
Facts about the case:–
2. Whereas, office of the Registrar of Companies, Bihar-cum-Official Liquidator, High Court Patna, has issued letter no. ROC/Pat/Compt/ 2091/761-765 dated 10.08.2022 to the company and its directors; however the said letter addressed to the company returned undelivered in this office with postal remarks “Left”. Therefore, it appears that the company is not maintaining registered office as required under section 12(1) of the Companies Act 2013.
3. That, this office has issued show cause notice under section 12 of the Companies Act 2013, vide letter no. ROC/Pat/Compt/ 2091/S-12/1465-1468 dated 08.09.2022 to the company and its director but no reply has yet been received from them. Hence it appears that the provisions of Section 12 of the Companies Act, 2013 has been contravened by the company and its director and therefore they are liable for penalty u/ s 12(8) of the Companies Act, 2013.
4. Sections 12(1), 12(4) and 12(8) are reproduced as under:-
Section 12(1) – “A company shall, on and from the thirtieth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be prescribed”.
Section 12(4) – “Notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar within thirty days of the change, who shall record the same”.
Section 12(8) – If any default is made in complying with the requirement of this section, the company and even] officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees”.
5. Whereas, this office had issued “Notice for Hearing” vide No. ROC/Pat/Compt/S-12/ 2091/1721-1724 dated 26.09.2022 to the company and its director/officers in default to appear personally or though authorized representative under Rule 3(3), Companies (Adjudication of Penalties) Rules, 2014 on 14.10.2022 at 12:00 p.m.) and also to submit their response, if any, one working day prior to date of hearing i.e. 13.10.2022, however the letter addressed to the company returned undelivered with the postal remarks “Left”.
6. That, on the date of hearing neither the authorized representative of the company nor the Managing director/ Officers were present for hearing u/s. 12 of the Companies Act, 2013 Hence, it is concluded that the Company and its managing director/Officers in default are liable for penalty as per section 12(8) of the Companies Act, 2013 for non-maintenance of registered office of the company, viz., Magadh Spun Pipe Limited.
ORDER
7. Having considered the facts and circumstances of the case and after taking into account the factors above, I hereby impose a penalty of Rs. 100000 (one Iakh) on the company and Rs. 100000 (one lakh) each on the 3 (three) directors of the company under section 12(8) of the Act for failure in compliance of section 12(1) and 12(4) of the Companies Act, 2013.
8. The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website mca.aov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.
9. Appeal against this order may be filled in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata within a period of 60 (sixty) days from the date of receipt of this order, in Form ADJ (available on Ministry website www.mca.govin) 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 (Adjudication of Penalties) Rules, 2014).
10. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order.
(Apafajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna
