MCA imposes penalty exceeding Rs. 11 Lakh for not filing Financial Statements on Company & Directors
Order for penalty for violation of section 137 of the Companies Act, 2013 with respect to Magadh Spun Pipe Limited
Company is in default for filing its Financial Statements for the financial year ended 31.03.2017 31.03.2019, 31.03.2020 and 31.03.2021 with the office of Registrar of Companies, Patna.
A reply dated 03.11.2022 was received from the company stating that ‘shortage of fund was the main cause of delay in all compliance related activities’ and the said reply is not tenable. As per MCA record, the company has not filed its Financial Statements for the Financial years end (31.03.2017, 31.03.2019, 31.03.2020 and 31.03.2021 till date. Hence the Company and its directors/Officers default are liable for penalty as per section 137(3) of the Companies Act, 2013.
Having considered the facts and circumstances of the case, and after taking into account the factors above, hereby impose a penalty on Company, and its Directors.
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/ 2091/1987
Dated: 09.11.2022
Order for penalty for violation of section 137 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 unde section 454 of the Companies Act, 2013 (herein after known as Act) read with Companies (Adjudication c Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
Company:-
2. Whereas, Company M/ s. Magadh Spun Pipe Limited, CIN: U27109BR1985PLC002091 (herein after know] as Company) is a company incorporated on 20.011985 under the provisions of Companies Act, 1956/201 in the state of Bihar and having its registered office situated at Shop No. R/4, Forth Floor, Chan& Vepa Bhawan, Exhibition Road Patna Bihar 800001, India as per MCA website.
Facts about the case:-
3. Whereas, the company is in default for filing its Financial Statements for the financial year ended 31.03.2017 31.03.2019, 31.03.2020 and 31.03.2021 with the office of Registrar of Companies, Patna. Hence, this office ha: issued show cause notice for default under section 137 of the Companies Act, 2013 vide Ni ROC/PAT/Compt/2091/1501-1504 dated 09.09.2022.
4. Whereas, this office has not received any reply from the company and its directors. Hence, it appears that the provisions of Section 137 of the Companies Act, 2013 has been contravened by the company and it directors/officers and therefore they are liable for penalty u/s 137(3) of the Companies Act, 2013.
Section 137(3) states that:- “If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousant rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such Minn continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all tors of the company, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with fort penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of f thousand rupees”.
5. Whereas, this office had issued “Notice for Hearing” vide No. ROC/PAT/Compt/2091/1725-1730 dat 26.09.2022 to the company and directors/officers in default to appear personally or through authorised representative under Rule 3(3), Companies (Adjudication of Penalties) Rules, 2014 on 14.10.2022 at 11.30 A and also to submit their response, if any, one working day prior to date of hearing i.e. 13.10.2022.
6. That, on the date of hearing, Mr. Ajay Kumar (CA) appeared on behalf of Shri Shambhu Achaijee (for default period 2016-17 only) and nothing counter as regard to the violation of provision for which if adjudication has been heard. Further, a reply dated 03.11.2022 was received from the company stating that “shortage of fund was the main cause of delay in all compliance related activities” and the said reply is not tenable. As per MCA record, the company has not filed its Financial Statements for the Financial years end (31.03.2017, 31.03.2019, 31.03.2020 and 31.03.2021 till date. Hence the Company and its directors/Officers default are liable for penalty as per section 137(3) of the Companies Act, 2013.
ORDER
7. Having considered the facts and circumstances of the case, and after taking into account the factors above, hereby impose a penalty on Company, and its Directors as per Table Below for violation of Section 137 c the Companies Act, 2013 for the Financial Years ended 31.03.2017, 31.03.2019, 31.03.2020 and 31.03.2021.
(* No of days have been calculated from 30.10.2017 to till date of order, i.e, 09.11.2022 for FY 2016-2017 and so only.
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 www.mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Service’s within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.
10. 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.gov.in) setting forth the grounds of appeal and shall be accompanied by a certified copy of this order {Section 454(5) and 454(6) of the Act read with Companies (Adjudication of Penalties) Rules, 2014}.
11. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order.
(Aparajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna
