MCA Imposes Rs. 4 Lakh Penalty on Company for Failure to Maintain Registered Office
The Ministry of Corporate Affairs (MCA) has taken strict action against Giriraj Ginning and Pressing Private Limited for not maintaining its registered office as required by law. In this article, we will analyze the details of the case, including the penalties imposed by the MCA.
Analysis: Giriraj Ginning and Pressing Private Limited, a company registered under the Companies Act, failed to comply with Section 12(1) of the Act, which mandates the maintenance of a registered office. Despite receiving notices and reminders from the MCA, the company did not rectify the default, leading to an inquiry and subsequent penalty proceedings.
The Adjudicating Officer reviewed the case and considered various factors while determining the penalty amount, such as the nature of the default and the duration of non-compliance. After careful consideration, a penalty of Rs. 4 lakh was imposed on the company.
Conclusion: Non-compliance with statutory requirements, such as maintaining a registered office, can have severe consequences for companies. The MCA’s imposition of a Rs. 4 lakh penalty on Giriraj Ginning and Pressing Private Limited serves as a reminder of the importance of adhering to legal obligations. Companies should ensure proper compliance with all relevant provisions to avoid penalties and legal repercussions.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF THE REGISTRAR OF COMPANIES,
GUJARAT, DADRA & NAGAR HAVELI
ROC Bhavan, Opp. Rupal Park,
Nr. Ankur Bus Stand. Na•anpura, Ahmedabad (Gujarat) – 380013.
Tel. No.: 079-27438531, Fax : 079-27438371
Website : www.m::a.gov in E-mail : roc.ahmedabad@mca.gov.in
BEFORE THE ADJUDICATING OFFICER
REGISTRAR OF COMPANIES, GUJARAT, DADRA & NAGAR HAVELI
Order No. ROC-GUAM-Order/Sec. 454/ Giriraj Ginning /Sec. 12/2023-24/1716 To 20 Dated: 04 JUL 2023
EX-PARTE ORDER FOR PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (ADJUDICTION OF PENALTIES) RULES, 2014 and COMPANIES ADJUDICATION OF PENALTIES) AMENDMENT RULES, 2019 FOR VIOLATION OF SECTION 12(1) OF THE COMPANIES ACT, 2013 READ WITH RULES MADE THEREUNDER
IN THE MATTER OF GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED
(U171196J1998PTCO34650)
Date of hearing- 27.06.2023
PRESENT :
1. Shri R. C. Mishra (ROC), Adjudicating Officer
2. Indrajit Vania (DROC), Presenting Officer
Company/ Officers/Directors/KMP/Authorized Representative : Absent
Appointment of Adjudication Authority:-
1. The Ministry of Corporate Affairs vide its Gazette Notification A42011/112/2014-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. Giriraj Ginning And Pressing Private Limited (herein after referred to as “company”) is a company registered under the provisions of the Companies Act, 1956/2013 (hereinafter referred to as “Act”) in the State of Gujarat on 09.1998having its registered office at “SUR NO 5A AT HADAMTALA TALKOTDA SANGANI,DIST RAJKOT, GUJARAT”. The CIN of the Company is U17119GJ1998PTCO34650.
Fact about of the case:
3. The Ministry has ordered to inquiry of the subject company u/s 206(4) of the Companies Act, Notice u/s 206(1) dated 19.10.2020 sent to the company has returned undelivered to this office. Further, reminder letter u/s 206(3) dated 12.01.2021 issued to the company has also been received back to this office. It appears that the Company is not maintaining its registered office in compliance of the Section 12 of the Companies Act, 2013, which attracted penal provisions of Section 12(8) of the Companies Act, 2013. Therefore, this office has submitted report to the Directorate u/s 208 of the Companies Act, 2013 in the Inquiry matter. The Directorate vide letter dated 05.09.2022 directed to take necessary action in the matter and submit an Action Taken Report in the matter at the earliest.
Show Cause Notice & reply of the Company:-
4. An Adjudication Notices vide No. ROC-GUAM-Sec. 454/ GIRIRAJ GINNING /202324/1209 to 1212 dated 01.06.2023 were issued to the company and its officers in default for violation of Section 12(1) of the Act. But, no suitable reply received from the company/directors to the aforesaid Notices.
5. Thereafter, a “written Notice” has been issued to mailing address of the company and its Directors in pursuant to sub-section 4 of Section 454 of the Companies Act, 2013 read with Rule 3 of Companies (Adjudication of Penalties) Rules, 2014 and a hearing was fixed for 27.06.2023. None of the representatives of the company or directors have either furnished their suitable reply in stipulated time or have appeared on the date so fixed before the Adjudicating Officer.
Submission of Presenting Office:
6. Presenting office submitted that the matter is fit for further proceedings as contemplated in pursuant to Section 454 of the Companies Act, 2013 read with sub-Rule 11 of Rule 3 of the Companies (Adjudication of Penalties) Rules 2014 for default of Section 12(1) of the Companies Act, 2013 in the absence of Authorized representative of Company /Directors /Officers in default as it has been established that the company has failed to maintained registered office at given address i.e. at
“SUR NO 5A AT HADAMTALA TALKOTDA SANGANI,DIST RAJKOT, GUJARAT”.
ORDER
1. While adjudging quantum of penalty under section 12(8) of the Act, the Adjudicating 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.
2. 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 noticee 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 noticee or the loss caused to the investors in a default of this nature.
3. Having considered the facts and circumstances of the case and submissions made by the Presenting Officer and after taking into accounts the factors above, the undersigned has reasonable cause to believe that the company and its officers in default have failed complied with the provisions of Section 12(1) of the Companies Act, 2013.1 hereby imposed penalty as under:
|
Nature of default |
Penalty imposed on company/Direc for | No. of days |
Penalty calculated Default (Rs.) in pursuant to Section 12(8) of the Companies Act, 2013 | Maximum penalty in pursuant to Section 12(8) of the Companies Act, 2013 |
Penalty Imposed (In Rs.) |
| Violation of Section 12(1) of the Companies Act, 2013 | GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED |
983 | 983*1000=9,83,000 | 100,000 | 1,00,000 |
| PARTH BHADRESH MEHTA | 983 | 983*1000=9,83,000 | 100,000 | 1,00,000 | |
| CHIRAG BHARATKUMAR SELANI | 983 | 983*1000=9,83,000 | 100,000 | 1,00,000 | |
| BHARATKUMAR VRAJLAL SELANI | 983 | 983*1000=9,83,000 | 100,000 | 1,00,000 |
(Period of default counted 983 days from ROC’s letter dated 19.10.2020 issued to the company which has return back undelivered to the date of hearing i.e. 27.06.2023)
AO is of the opinion that penalty is commensurate with the aforesaid default committed by the Noticees:
4. The Company/Officer are further directed to rectify the default failing which this office shall be proceeded further the matter in pursuant to Section 454A of the Companies Act, 2013 for the non-compliance of the aforesaid provisions of the Companies Act, 2013.
5. The noticee shall pay the amount of penalty individually for the company and its officers from their personal sources/income by way of e-payment available on Ministry website mca.gov.in under “Pay miscellaneous fees” category in MCA fee and payment Services under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 within 90 days from the date of receipt of this order and copy of this adjudication order and Challan/SRN generated after payment of penalty through online mode shall be filed in INC-28 under the MCA portal without further reference.
6. Appeal against this order may be filed in writing with the Regional Director, North Western Region, Ministry of Corporate Affairs, Roc Bhavan, opp. Rupal park, Nr. ANKUR BUS STAND, NARANAPURA, AHMEDABAD (GUJARAT)-380013 within a period of sixty days from the date of receipt of this order, in Form ADJ setting forth the grounds of appeal and shall be accompanied by the certified copy of this order. [Section 454(5) & 454(6) of the Companies Act, 2013 read with the Companies (Adjudicating of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019]
7. Your attention is also invited to Section 454(8)(i) and 454(8) (ii) of the Companies Act, 2013, which state that in case of non-payment of penalty amount, the company shall be punishable with fine which shall not less than Twenty Five Thousand Rupees but which may extend to Five Lakhs Rupees and officer in default shall be punishable with imprisonment which may extend to Six months or with fine which shall not be less than Twenty Five Thousand Rupees by which may extend to one Lakhs Rupees or with both.
The adjudication notice stands disposed of with this order.
(R. C. Mishra,1CLS)
Registrar of Companies & Adjudicating Officer
Ministry of Corporate Affairs,
Gujarat, Dadra & Nagar Haveli
