Registrar of Companies, Gujarat, Dadra & Nagar Haveli, has issued an ex-parte order imposing penalties on M/s. Yuva Nidhi Company Limited for their non-compliance with Section 117 read with Section 179 of the Companies Act, 2013. The violation pertains to the company’s failure to file e-form MGT-14 for the approval of annual accounts for multiple financial years.
BEFOR THE ADJUDICATING OFFICER
REGISTRAR OF COMPANIES, GUJARAT, DADRA & NAGAR HAVELI
Order No. ROC-Guj/Yuva Nidhi/Adj. Order/Sec. 92(4)/2023/1122 to 27 Dated: 25 MAY 2023
Ex-PARTE ORDER FOR PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (ADJUDICATION OF PENALTIES) RULES, 2014 FOR VIOLATION OF SECTION 117 r.w. 179 OF THE COMPANIES ACT, 2013.
IN THE MATTER OF M/s. YUVA NIDHI COMPANY LIMITED.
(U65991GJ2013PLC077222)
Presents
Date of hearing-09.05.2023
(1) Shri R. C. Mishra- Adjudicating Officer
(2) Shri Gajanan Kate- Presenting Officer
(3) Shri Niranjan Lal Yadav-Junior Technical Assistant
Company/Officers in Default/Authorized Representative:
1. Mr. ATUL KUMAR SINGH (Director)
2. Mr. MEHULKUMAR UPENDRABHAI VYAS (Director)
3. Mr. SURENDRASINGH SABHAJIT SINGH RAJPUT (Director)
4. Mr. RAVINDERSINGH RAMJISINGH (Director)
Appointment of Adjudication Authority: –
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 (hereinafter known as Act) read with Companies (Adjudication of Penalties) Rules, 2014 (Notification No. GSR 254(E) dated 31.03.2014) for adjudging penalties under the provisions of Act.
Company:
2. Whereas, M/s. Yuva Nidhi Company Limited (herein after referred to as “the Company”) is a Company registered under the provisions of the Companies Act, 1956/2013 in the State of Gujarat, having CIN (U65991GJ2013PLC077222) on 15.10.2013 and presently having its registered office situated at E- 407, Galaxy Arcade Commercial CO. OP. Soc, B/H Galaxy Avenue, Opp. Galaxy Cinema, Naroda, Ahmedabad, Gujarat, 382330, India.
Fact of the case:
3. WHEREAS Pursuant to the provision of section 117 read with section 179 of the Companies Act, 2013, specified board resolutions are required to be filed by e-form MGT-14 to the Registrar of the Companies. It is observed that e-form MGT-14 in respect of approval of Annual Accounts by the Board of Directors for FY 2014-15, FY 2015-16, FY 2016-17, FY 2017-18 and FY 2018-19, respectively under section 117 read with section 179 of the Companies Act, 2013.
4. WHEREAS, Section 117(2) of the Companies Act, 2013 If any company fails to file the resolution or the agreement under sub-section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees and every officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.
5. WHEREAS, It is observed that e-form MGT-14 in respect of approval of Annual Accounts by the Board of Directors for FY 2014-15, FY 2015-16, FY 2016-17, FY 2017-18 and FY 2018-19, under section 117 read with section 179 of the Companies Act, 2013 were not filed by the company. Hence, the Company and its officer(s) made violation of section 117 read with section 179 of the Companies Act, 2013
Show Cause Notice, reply and personal hearing:-
6. Whereas, the office of the undersigned issued adjudication notice under section 454 of the Companies Act, 2013 for violation of section 117 r.w. with section 179 of the Companies Act, 2013 to the Company and its officers in default on 28.04.2023 and also opportunity of being heard was given on 09.05.2023.
7. In response to the adjudication notice dated 28.04.2023 issued by the undersigned, neither the company nor the directors have replied nor attended the said hearing.
Submission of Presenting Officer:
The presenting officer submitted that sufficient opportunity has been given the company and its officers in default but it appears that neither they submitted reply nor appear for physical hearing as per schedule fixed. It is further submitted that the company and its officers in default have violated the provisions of section 117 r.w. 179 of the Companies Act, 2013. Hence, the Adjudicating Authority has empowered u/s 454 of the Companies Act, 2013 to impose penalty u/s 117(2) for Violation of section 117 r.w. 179 of the Companies Act, 2013.
ORDER:
8. While adjudging quantum of penalty under section 117 r.w. with section 179 of the Companies Act, 2013, the Adjudication Officer shall have due regard to the following factors, namely:
(a) The amount of disproportionate gain or unfair advantage, whenever quantifiable, made as a result of default.
(b) The amount of loss caused to an investor or group of investors as a result of the default.
(c) The repetitive nature of default.
9. With regard to the above factors to be considered while determining the quantum of penalty, it is noted that the disproportionate gain or unfair advantage made by the notice or loss caused to the investor as a result of the delay on the part of the notice to redress the investor grievance are not available on the record. Further, it may also be added that it is difficult to quantify the unfair advantage made by the notice or the loss caused to the investors in a default of this nature.
10. Having considered the facts and circumstances of the case and after taking into account the above factors, the undersigned has reasonable cause to believe that the company and its officers have failed to deposit the penalty for violation of section 117 r.w. with section 179 of the Companies Act, 2013. I hereby impose a penalty on company and its Directors / officer in default as per Table below for violation of section 117(2) of the Companies Act, 2013 as detailed below:
11. Penalty on company and Officers in default for the aforesaid default are as under:
| Name of Company/ Director | Penalty As per Section 117(2) of the Companies Act, 2013 | Maximum Penalty (in Rs.) | Penalty Imposed (in Rs.) |
| Company | Rs.10000 and continue default Rs.100 per day for | 2,00,000 | 200,000 |
| Shri Atul Kumar Singh | Rs.10000 and continue default Rs.100 per day for | 50000 | 50000 |
| Shri Mehulkumar Upendrabhai Vyas |
Rs.10000 and continue default Rs.100 per day for | 50000 | 50000 |
| Shri Surendrasingh Sabhajit Singh Rajput | Rs.10000 and continue default Rs.100 per day for | 50000 | 50000 |
| Shri Ravindersingh Ramjisingh | Rs.10000 and continue default Rs.100 per day for | 50000 | 50000 |
12. The noticee shall pay the amount of penalty individually for the company and its directors (out o i own pocked) by way of form No. INC-28 of e-payment (available on Ministry Website www.mac.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Service within 90 (ninety) d. s of this order and the Challan/SRN generated after payment of penalty through online mode sh. 1 be forwarded to this office along with the copy of form No.INC- 28.
13. Appeal if any, against this order may be filed in writing with the Regional Director, North Western Regional, Ministry of Corporate Affairs, ROC Bhavan, Opp. Rupal Park, Nr. Ankur Bus stand, Naranpura, Ahmedabad (Gujarat) 380 013 within a period of sixty days from the date of receipt f this order, in e-Form ADJ setting forth the grounds of appeal and shall be accompanied by the certified copy of this order. (Section 454 of the Companies Act, 2013 read with the Companies (Adjudicating of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019).
14. Please note that as per the provisions of section 454(8)(i) of the Companies Act, 2013, where company does not pay the penalty imposed by the Adjudication officer or the Regional Director within a period of Ninety days (90 days) from the date of the receipt of the copy or order, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakhs rupees. Further as per section 454(8)(ii) of the Companies Act, 2013, where an office of a company who is in default does not pay the penalty within a period of Ninety days (90 days) from the date of receipt of the copy of the order, such officers 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.
15. Your attention is also invited to section 454(8) of the Companies Act, 2013 in the event of noncompliance of this order which provides that in case of default in payment of penalty, prosecution will be filed u/s. 454(8)(ii) of the Companies Act, 2013 at your own costs without any further notice. The adjudication notice stands disposed of with this order.
(R.C.MISHRA ICLS)
Adjudicating officer,
Registrar of Companies,
Gujarat, Dadra and Nagar Haveli
