Maya Spintex Limited faces penalties from the Ministry of Corporate Affairs (MCA) for its failure to file balance sheet returns as mandated by the Companies Act, 2013. This article examines the details of the case, penalties imposed, and the consequences of non-compliance.
Analysis:
The article analyzes the adjudication proceedings initiated against Maya Spintex Ltd by the Registrar of Companies, Madhya Pradesh. It outlines the background of the case, including the company’s failure to file balance sheet returns for multiple financial years.
Despite directives from the National Company Law Tribunal for restoration and compliance, Maya Spintex Ltd neglected to fulfill its filing obligations. This violation of Section 137(1) of the Companies Act, 2013, prompted penal action under Section 137(3).
The article details the issuance of show cause notices and inquiry notices to the company and its officers in default. Despite opportunities for defense, neither the company nor its representatives attended the hearing, leading to the imposition of penalties.
The penalties imposed on Maya Spintex Ltd and its directors are elaborated, including the calculation of penalties for each financial year from 2018-19 to 2021-22. The article highlights the penalty amounts, relevant sections, and the final penalties imposed.
Furthermore, the article discusses the implications of the penalties, including the requirement for the company and its officers to remit the penalty amounts through the Ministry of Corporate Affairs portal within 60 days. It also outlines the appeal process available to aggrieved parties and the potential consequences of non-compliance with the adjudication order.
Conclusion:
The case of Maya Spintex Ltd underscores the importance of compliance with regulatory obligations under the Companies Act, 2013. The penalties imposed serve as a reminder of the legal consequences of failing to fulfill filing requirements. Non-compliance can result in significant financial liabilities and legal repercussions, emphasizing the necessity of adherence to statutory obligations to maintain corporate transparency and accountability.
***
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Office of The Registrar of Companies, Madhya Pradesh
Sanjay Complex, ‘A’ Block, 3rd Floor
Jayendraganj, Gwalior — 474009.
E.mail: roc.gwaliorAmea.gov.in
Order No. ROC-G/Adj. Pen. /u/s. 137(1)/Maya/4007 Dated: 22 MAR 2024
1. M/s. Maya Spintex Limited, 2nd Floor, Manas Bhawan-11-RNT Marg, Indore
2. Sh. Krishanlal Sobharam Ahuja S/o. Sh. Sobharam Ladharam Ahuja, director
3. Sh. Shyam Sunder Choudhary S/o.Sh. Kham Chand Choudhary, director
4. Kamal Patel S/o. Sh. Babulal Patel, director
5. Regional Tonal Director, North-Western Region, Ministry of Corporate Affairs, Ahmedabad,(Gujarat).
6. E-governance cell for uploading the documents.
In the matter of Companies Act, 2013
And
In the matter of adjudication proceeding under sub-section (1) of Section 137 of the
Companies Act, 2013.
And
In the matter of M/s. Maya Spintex Limited
(CIN- U17121MP1997PLC012535)
Date of hearing 21st March, 2024
Appointment of adjudicating officer:
1. 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 (hereinafter known as “Act” ) read with Companies (Adjudication of Penalties) Rules, 2014 for adjudicating penalties under the provisions of this Act.
Company:
2. Whereas company Maya Spintex Limited (CIN-U17121MP1997PLC012535) [herein after known as company] is a registered company with this office under the provisions of Companies Act, 2013 having its registered office situated at 2nd Floor, Manas Bhawan-11-RNT Marg, Indore, M.P., as per the MCA website.
Facts about the case:
3. Whereas the National Company Law Tribunal, Indore Bench vide its order dated 10.11.2023 passed in Company Petition No. 10/2023, has ordered that the restoration of the company’s name to the Register of the Registrar of Companies is ordered subject to its filing of all outstanding documents with proper filing fees along with additional frees required under law and competition of all formalities including payment of any late fee. In view of the above and information available on MCA21 data base, the status of the company has been changed from Struck-off to Active. But the company has not filed its balance sheet return for the financial year from 2010-11 to 2017-18 and from 2018-19 to 2021-22 under Section 137(1) of the Companies Act, 2013. Hence, it appears that company and its officers in defaults has violated the provisions of Section 137(1) of the Companies Act, 2013 and are liable for penal action u/ s. 137(3) of the Companies Act, 2013 for financial year 201819 to 2021-22.
4. Subsequently, this office had issued show cause notice U/s. 137(1) to the company and its officers in default vide No. ROC-G/Adj.Pen./u/s. 137(1)/Maya/ 3549 to 3552 dated 06.02.2024. But the notice as issued to company was undelivered with postal authority remark 
5. Thereafter, “Notices of Inquiry” vide No. ROC-G/Adj. Pen./u/s. 137(1)/ Maya/ 3846 to 3849 dated 06.03.2024 were issued to the company and its officers in default. As per [Rule 3(3), companies (Adjudication of Penalties) Rules, 2014 and the date of hearing was fixed son 21.03.2024 at 11.30 A.M. in the office of Registrar of Companies, Madhya Pradesh, Sanjay Complex, A-Block, 3rd Floor, Jayendraganj, Gwalior.
6. On the date of hearing i.e. 21.03.2024, no person or representative of the company has attended the hearing.
7. Order:
Having considered the facts and circumstances of the case and after taking into account the factors above and letter dated 06.02.2024 and 06.03.2024 issued by ROC, Gwalior, it is concluded that the company is liable for penalty as prescribed under Section 137(3) of the Act for the financial year 2018-19 to 2021-22 viz. Maya Spintex Limited, in terms of Section 137(1) of the Act.
8. Accordingly, I am inclined to impose a penalty as prescribed under Sub-section 3 of section 137 of the Companies Act, 2013. The details of the penalty imposed on the company and officers in default are shown in the table below:
| Financial year |
Period | No. of days of defaults |
| 2018-19 | 29.10.2019 to 21.03.2024 | 1604 |
| 2019-20 | 29.10.2020 to 21.03.2024 | 1239 |
| 2020-21 | 29.10.2021 to 21.03.2024 | 874 |
| 2021-22 | 29.10.2022 to 21.03.2024 | 509 |
(Penalty amount for Balance Sheet u/s. 137 for financial year 2018-19)
Nature of default |
Relevant section under the Companies Act, 2013 |
Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) |
Penalty imposed |
Non- filing of annual return |
S. 137(1) |
On company |
1604 |
Rs. 10,000/-+(100×1604) Rs. 1,70,400/–.Maximum penalty Rs. 2,00,000/- |
Rs. 1,70,400 |
Pradeep
|
1604 |
Rs. 10,000/-+ (100×1604) Rs. 170,400/-.Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
||
Anupama
|
1604 |
Rs. 10,000/-+ (100×1604) Rs.1,70,400/-.Maximum penalty
|
Rs.50,000/- |
(Penalty amount for Balance Sheet u/s. 137 for financial year 2019-20)
|
Nature of default |
Relevant section under the Companies Act, 2013 | Name of persons on whom penalty is imposed | No. of days of default | Total penalty as per Section 137(3) | Penalty imposed |
| Non- filing of annual return | S. 137(1) | On company | 1239 | Rs. 10,000/-+ (100×1239) Rs. 1,33,900/-.
Maximum penalty Rs. 2,00,000/- |
Rs. 1,33,900 |
| Pradeep Sharma |
1239 | Rs. 10,000/-+ (100×1239) Rs. 1,33,900/-.
Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Anupama Sharma |
1239 | Rs. 10,000/-+ (100×1239) Rs.1,33,900/-.
Maximum penalty Rs. 50,000/- |
Rs.50,000/- |
(Penalty amount for Balance Sheet u/s. 137 for financial year 2020-21)
Nature of default |
Relevant section under the Companies Act, 2013 |
Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) |
Penalty imposed |
Non- filing of annual return |
S. 137(1) |
On company |
874 |
Rs. 10,000/-+ (100×874) Rs. 97,400/-.Maximum penalty
|
Rs. 97,400/- |
Pradeep Sharma |
874 |
Rs. 10,000/-+ (100×874) Rs. 97,400/-.Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
||
Anupama Sharma |
874 |
Rs. 10,000/-+ (100×874) Rs.97,400/-.Maximum penalty
|
Rs.50,000/- |
(Penalty amount for Balance Sheet u/s. 137 for financial year 2021-22)
|
Nature of default |
Relevant section under the Companies Act, 2013 | Name of persons on whom penalty is imposed | No. of days of default | Total penalty as per Section 137(3) | Penalty imposed |
| Non- filing of annual return | S. 137(1) | On company | 509 | Rs. 10,000/-+ (100×509) Rs. 60,900/-.
Maximum penalty |
Rs. 60,900/- |
| Pradeep Sharma | 509 | Rs. 10,000/-+(100×509) Rs. 60,900r.
Maximum penalty |
Rs. 50,000/- | ||
| Anupama Sharma | 509 | Rs. 10,000/-+ (100×509) Rs.60,900/-.
Maximum penalty Rs. 50,000/- |
Rs.50,000/- |
9. I am of this opinion that penalty is commensurate with the aforesaid failure committed by the notice and penalty so imposed upon the officers-in-default shall be paid from their personal sources/income. It is further directed that penalty imposed shall be paid through the Ministry of corporate Affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 under intimation to this office.
10. The penalty amount shall be remitted by the company through MCA21 portal within 60 days from the date of order. The company needs to file INC-28 as per the provisions of the act attaching the copy of adjudication order alongwith payment challans.
11. Any person aggrieved by the order of adjudicating authority under Section 3 of Section 454 may prefer an appeal to the Regional Director having jurisdiction in the matter.
12. Every appeal under sub-section (5) of section 454 shall be filed within 60 days from the date on which the copy or order made by the adjudicating authority is received by the aggrieved person and shall be in such form, manner and be accompanied by such fee as may be prescribed.
13. As per Section 454(8) (i) where a 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 90 days from the date of receipt of the copy of the copy of the order, the company shall be punishable with fine which shall not be less than twenty five thousand but which may extend to five lakh rupees.
14. 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 90 days from the date of receipt of the order such officer shall be punishable with imprisonment which may extend to six months or with the fine which shall not be less than twenty five thousands rupees but which may extend to one lakh or with both.
15. This order is without prejudice to the rights available to this office to initiate separate action including but not limited to the penal actions for contraventions of related, incidental and/or continuing offences/ contraventions.
16. In terms of the provisions of sub-rule 3 of the Companies (Adjudication of Penalties) Rules, 2014 copy of the order is being sent to M/s. Maya Spintex Limited, 2nd Floor, Manas Bhawan-11-RNT Marg, Indore, Sh. Krishanlal Sobharam Ahuja S/o. Sh. Sobharam Ladharam Ahuja, director (DIN-03163371), 217-2018, Manas Bhawan, 11 RNT Marg, Indore 452001, M.P., Sh. Shyam Sunder Choudhary S/o.Sh. Kham Chand Choudhary, director (DIN- 504, Prakash Tower, 23/1, Y.N. Road, Indore 452001, M.P., Sh. Kamal Patel S/o. Sh. Babulal Patel, director (DIN-03174513), 217-217-2018, Manas Bhawan, 11 RNT Marg, Indore 452001, M.P., Regional Director, North-Western Region, Ministry of Corporate Affairs, Ahmedabad, (Gujarat), E-governance cell for uploading the documents on MCA website.
The adjudication notice stand disposed off with this order.
