Introduction: The Government of India, Ministry of Corporate Affairs, through the Office of Registrar of Companies in Tamil Nadu, Andaman & Nicobar Islands, Chennai, has issued an adjudication order under Section 92 of the Companies Act, 2013, concerning M/s Nadesh Trade Impex Private Limited.
Detailed Analysis:
The order outlines the appointment of the Registrar of Companies, Chennai, as the Adjudicating Officer, entrusted with the authority to assess penalties as per the Companies Act, 2013. M/s Nadesh Trade Impex Private Limited, a registered company, failed to comply with the statutory obligation of filing annual returns.
Despite multiple notices and inquiries, the company and its directors remained non-responsive. Subsequent adjudication hearings proceeded in their absence. The Adjudicating Officer, taking into account the facts and provisions of the Act, imposed penalties based on the duration of default and relevant legal considerations.
The analysis includes detailed financial particulars, directorship information, and the specific penal provisions of the Companies Act, 2013, violated by the company.
Conclusion: The adjudication order signifies the Government’s commitment to upholding corporate governance standards and regulatory compliance. It serves as a warning to companies regarding the repercussions of non-compliance with statutory obligations.
M/s Nadesh Trade Impex Private Limited’s case highlights the importance of timely adherence to legal requirements and the consequences of failing to do so. The penalties imposed underscore the seriousness with which such violations are regarded by regulatory authorities.
In conclusion, the adjudication order emphasizes the Ministry of Corporate Affairs’ vigilance in ensuring transparency and accountability in corporate operations, thereby maintaining investor confidence and upholding the integrity of the corporate sector.
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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/NADESH TRADE/ADJ/S.92/2024
DATE: 19 MAR 2024
ADJUDICATION ORDER UNDER SECTION 92 OF THE COMPANIES ACT, 2013
IN THE MATTER OF M/S NADESH TRADE IMPEX 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. Nadesh Trade Impex Private Limited with CIN: U74999TN2016PTC112240 (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 Ground Floor, Office No.6, Barrack Arcade, No.64, Perambur Barracks Road, Purasaiwalkam, Chennai 600007. The financial & oth. details of the subject company as available on MCA-21 portal is stated as under:
|
S.No. |
Particulars | Details as per FY 2016-17 |
| 1. | Paid up Capital | Rs. 1,50,000/‑ |
| 2. | a. Revenue from Operation | Rs.20,55,68,648.7/- |
| b. Other Income | NIL | |
| c. Profit for the Period | Rs.1,81,959.43/-
Note: The company has not filed financial statements and Annual Return since 2017-18. |
|
| 3. | Whether it is a Holding Company | No |
| 4. | Whether it is a Subsidiary Company | No |
| 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. | Sanjay Kumar Sharma |
Whole time Director | 30.08.2016 | ….. |
4. Section and Penal Provision as per Companies Act, 2013
Section 92 of the Companies Act, 2013- Annual Return:
4) Every company shall file with the Registrar a copy of the annual return, within sixty days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within sixty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed.
(5) If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default.
5. Issue of Adjudication Notice:
This Office has conducted an Inquiry U/s 206 (4) of the Companies of the Companies Act, 2013 in the matter of M/s. Nadesh Trade Impex Private Limited. The Inquiry report states that the company has not filed Annal Returns and Balance sheet for the financial year ending on 31.03.2018. After that this office has issued show cause for adjudication vide letters No.ROC/CHN/112240/S.92/P.2/INQUIRY FOLLOW UP/ 2020 on 09.05.2022 to the company and its Officers in default for non-compliance of Section 92 of the Companies Act, 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 on 30.08.2023 fixing the hearing date as 07.09.2023 at 02:30 PM. No response was received for the hearing notice dated 30.08.2023 and neither the authorized representative of the company nor the Directors attended the hearing on 07.09.2023.
Hence, this office fixed final hearing for the said violation on 19.10.2023 at 01:.00PM vid• notice dated 13.10.2023 and served the same through Post and email. Pursuant to the hearing notice dated 13.10.2023, Shri. Sanjay Kumar Sharma, Whole Time Director has appeared before the Adjudicating Authority on 19.10.2023 at 01:00 PM and made submissions that “the said violation may be adjudicated and accepted to pay the penalty as prescribed under Section 92(5) of the Companies Act, 2013”.
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 92(5) of the Act for non-filing of Annual Return for the Financial Year ending on 31.03.2018.
- Financial Year 2017-18 for 1786 days i.e, by considering the AGM was conducted on 30.09.2018, 60 days from the date of AGM i.e, 29.10.2018 to 19.10.2023 (both days are included)
Accordingly, I am inclined to impose a penalty as prescribed under Sub-section 5 of Section 92 of the Companies Act, 2013. The details of the penalty imposed on the company and officers in default are shown in the table below:
FY 2017-18
|
Name of person on whom penalty imposed |
No of days of default | Penalty for default (Rs) | Total Penalty (Rs) | Maximum Limit for penalty (Rs) | Penalty Imposed (Rs) |
| M/s. Nadesh Trade Impex Private Limited, Company | 1786 days | Rs.10,000 + Rs.100 per day (for continuing failure) | 10,000 + 1786 x 100= 1,88,600 | 2,00,000 | 1,88,600 |
| Mr. Sanjay Kumar Sharma, Whole time Director | 1786 days
|
Rs.10,000 + Rs.100 per day (for continuing failure) | 10,000 + 1786 x 100= 1,88,600 | 50,000 | 50,000 |
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.1,88,600/- (Rupees One lakh eighty eight thousand six hundred) is imposed on the Company and Rs.50,000/- (Rupees Fifty thousand) is imposed on the Officer in default. Totally Rs. 2,38,600/- (Rupees Two lakh thirty eight thousand six hundred) as penalty amount for the FY 2017-18.
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, Chennai600006., 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 (Adjudicating 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
