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The Ministry of Corporate Affairs, Government of India, through the Registrar of Companies, Chennai, has issued an adjudication order concerning the violation of Section 170 of the Companies Act, 2013 by M/s Hermes I Tickets Private Limited.

The order reveals that M/s Hermes I Tickets Pvt. Ltd. failed to maintain the register of Directors and Key Managerial Personnel (KMP) as mandated by Section 170 of the Companies Act, 2013. Despite directives and notices, the company and its officers did not comply with the requirements, leading to penalties under Section 172 of the Act.

An inquiry conducted by an authorized officer revealed significant lapses in compliance. The company was directed to furnish various documents, including registers of members, fixed assets, charges, loans, investments, and contracts involving directors’ interests. However, the company failed to provide these documents, indicating non-maintenance of essential registers.

Subsequently, a show-cause notice was issued, followed by an adjudication hearing. While representatives appeared on behalf of the company and some directors, no satisfactory response was received. Therefore, penalties were imposed on M/s Hermes I Tickets Pvt. Ltd. and its officers, as per the provisions of Section 172 of the Companies Act, 2013.

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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF REGISTRAR OF COMPANIES, TAMIL NADU, ANDAMAN & NICOBAR ISLANDS, CHENNAI
II FLOOR, C- WING, SHASTRI BHAVAN, 26, HADDOWS ROAD, NUNGAMBAKKAM, CHENNAI- 6

F.NO.ROC/CHN/HERMES I/ADJ/S.170/2024 DATE: 27 MAR 2024

ADJUDICATION ORDER UNDER SECTION 170 OF THE COMPANIES ACT, 2013
IN THE MATTER OF M/S HERMES I TICKETS PRIVATE LIMITED

1. Appointment of Adjudicating Officer:”

The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014-Ad.II, dated 24.03.2015 has appointed Registrar of Companies, Chennai as Adjudicating Officer in exercise of the powers conferred by section 454(1) of the Companies Act, 2013 (hereinafter referred as Act or Companies Act, 2013) r/w Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.

2. Company: –

Whereas the company viz M/s. Hermes I Tickets Private Limited with CIN: U63040TN2006PTC082562 (herein after referred as ‘ company’ or ‘ subject company’) is a registered company with this office under the Companies Act, 2013 having its registered office as per MCA21 Registry at Sai Krupa Plot No. 30A (south phase) First floor SIDCO THIRU-VI-KA Industrial Estate Guindy, Chennai, Tamil Nadu 600032.

The financial & other details of the subject company as available on MCA-21 portal is stated as under:

S. No. Particulars Details as per FY 2021-22
1. Paid up Capital Rs. 7,84,200/-
2. a. Revenue from Operation Rs.34,67,80,951/-
b. Other Income NIL
c.       Profit for the Period
3. Whether it is a Holding Company No
4. Whether it is a Subsidiary Company Yes
5. Whether company registered under Section 8 of the Act? No
6. Whether company registered under any other special Act? No

3. Directors

S. No. Name of Director Default Designation Date of Appointment Date of Cessation
1. Manojkumar
Sahu
Director 30.09.2016 …..
2. Vignesh Ravindran Director 19.10.2020 07.11.2020
Managing Director 07.11.2020 23.02.2024
3. Prabhakar Sujatha Additional Director 09.08.2021 23.02.2024

4. Section and Penal Provision as per Companies Act, 2013

Section 170 of the Companies Act, 2013- Register of Directors and key Managerial Personnel and their Shareholding :

(1) Every company shall keep at its registered office a register containing such particulars of its Directors and key managerial personnel as may be prescribed, which shall include the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company’s holding company or associate companies.

(2) A return containing such particulars and documents as may be prescribed, of the Directors and the key managerial personnel shall be filed with the Registrar within 2&3 thirty days) from the appointment of every director and key managerial personnel, as the case may be, and within thirty days of any change taking place.

Section 172. Penalty provides :

If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, 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.”

5. Issue of Adjudication Notice:

An inquiry was conducted on the affairs of the Company under Section 206(4) of the Companies Act, 2013 by an Officer authorized by the Central Government wherein the observations of the Inquiry Officer are as follows:

Inquiry Officer has directed the company to submit the following:

1. A copy of register of members with records since incorporation to till date.

2. Furnish the details of fixed assets register with details of all tangible and intangible assets since incorporation to till date.

3. Furnish the details of Register of charges. Along with the register, provide the details of all Charges, in a tabular format, since Incorporation including both satisfied and non-satisfied, along with relevant documents.

4. Furnish a copy of Register MPB-2, MPB-3 pertaining to loans and investments.

5. A copy of MPB-4 of or contracts and arrangements in which directors are interested.

6. Register of directors and KMP’s and their shareholding.

Further, Inquiry officer has reported that, According to Section 170 of the Companies Act, 2013, every company shall keep its registered office a register containing such particulars of its directors and key managerial personnel as may be prescribed which shall include the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company’s holding company or associate company. The company has not furnished any of the above mentioned documents, it appears that the company has not maintained the same. Hence, the company and its officers have contravened the provision of Section 170 of the Companies Act, 2013 and are liable for penal provisions under Section 172 of the Companies Act, 2013.

Accordingly, on submission of the Inquiry Report by the officer, Regional Director, Ministry of Corporate Affairs, Chennai has directed this office to initiate necessary action against the defaulters of the provisions of the Companies Act, 2013.

After this office has issued Show Cause Notice for Adjudication under Section 170 of the Companies Act vide Notice No.ROC/CHN/082562/S.170/P.22/INQUIRY FOLLOW UP/2022 dated 15.09.2023.

6. Reply of Company and Directors for Adjudication Notice issued:

No reply has been received from the company and its directors.

7. Adjudication Hearing:

Since no reply has been received from the company and its directors for the Adjudication notice, this office had issued Adjudication Hearing Notice to the subject company and Officers in default by fixing the hearing date as 13.02.2024 at 11:30 AM. Pursuant to the hearing notice Mr. M.Senthil Kumar, Chartered Accountant has appeared before the Adjudicating Authority on 13.02.2024 at 11:30 PM on behalf of the company and Vignesh Ravindran and Prabhakar Sujatha. Another director, Mr. Manoj Kumar Sahu was absent on the said date. Mr. M.Senthil Kumar, Chartered Accountant has submitted a reply letter of Mr. Vignesh Raveendran on the violations mentioned in the Notice of hearing. Further, this Adjudicating Authority has issued final notice of hearing to Mr. Manoj Kumar Sahu, Director on 23.02.2024 by fixing the hearing on 29.02.2024 at 12:45PM. Shri.M Rathnakumar, PCS has appeared before the Adjudicating Authority on 29.02.2024 on behalf of Mr. Manoj Kumar Sahu and made submission that the offense may be adjudicated.

8. Decision

Having considered the facts and circumstances of the case and after taking into account the factors above, it is concluded that (i) the company and its officers in default are liable for penalty as prescribed under Section 170 of the Act for non-maintenance of registers as prescribed under Section 170 of the Companies Act.

Accordingly, I am inclined to impose a penalty as prescribed under Section 172 of the Companies Act, 2013. The details of the penalty imposed on the company and officers in default are shown in the table below:

Name of Company/ person on whom penalty imposed Penalty for default (Rs) Maximum Limit for penalty (Rs) Penalty Imposed (Rs)
M/s. Hermes I Tickets Private Limited Rs.3,00,000/- Rs.3,00,000/- Rs. 3,00,000/-
Manojkumar Sahu Rs.1,00,000/- Rs.1,00,000/- Rs.1,00,000/-
Vignesh Ravindran Rs.1,00,000/- Rs.1,00,000/- Rs.1,00,000/-
Prabhakar Sujatha Rs.1,00,000/- Rs.1,00,000/- Rs.1,00,000/-

Therefore, in view of the above said violation, in exercise of the powers vested to the undersigned under Section 454(1) & (3) of the Companies Act, 2013 a penalty of Rs.3,00,000/- (Rupees Three lakhs) is imposed on the Company and Rs.1,00,000/- (Rupees One lakh) is imposed on each of the Officers in default. Totally Rs. 6,00,000/- (Rupees Six Lakhs) as penalty amount for violation of Section 170 of the Companies Act, 2013.

9. The said amount of penalty shall be paid through online by using the website mca.gov.in (Misc. head) within 90 days of receipt of this order, and intimate this office with proof of penalty paid.

10. Whereas Appeal against this order may be filed with the Regional Director (SR), Ministry of Corporate Affairs, 5th Floor, Shastri Bhavan, 26 Haddows Road, Chennai-600006, Tamil Nadu within a period of sixty days from the date of receipt of this order, in Form ADJ [available on Ministry website mca.gov.in] 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].

11. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order, “(8)(i) Where 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 ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees.

(ii) 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 ninety days from the date of the receipt of the copy of the order, such officer 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.”

(B. SRIKUMAR, ICLS)
REGISTRAR OF COMPANIES
TAMILNADU, CHENNAI.
ADJUDICATING OFFICER

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