The Registrar of Companies, Kanpur passed an adjudication order under Section 454 of the Companies Act, 2013, imposing penalties for violation of Section 117(1) read with Section 117(3)(g) due to failure to file e-Form MGT-14 for board resolutions approving annual accounts. The default came to light during a regulatory inquiry into Nidhi companies, where it was found that mandatory filings for multiple financial years, including FYs ending 31.03.2017 to 31.03.2020, were not made. Despite issuance of show cause notices, the company and its officers neither responded nor sought a personal hearing. Holding that statutory non-compliance was clearly established and continued without justification, the adjudicating authority imposed penalties under Section 117(2): Rs.1.69 lakh on the company and Rs.50,000 each on three directors, approaching the prescribed statutory limits. The order mandates rectification and payment within 90 days, specifies that directors must pay penalties from personal sources, and grants a right of appeal before the Regional Director, Noida.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Kanpur
Registrar of Companies, 37/17, Westcottt Buidling, The Mall, Kanpur, Uttar Pradesh, India, 208001
Phone: 0512-2310443,2310227,2310323
E-mail: roc.kanpur@mca.gov.in
Order ID: PO/ADJ/12-2025/KN/01313 | Dated: 31/12/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 117(2) OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 831(E) dated 24/03/2015 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to SHIVGANGA NIDHI LIMITED [herein after known as Company] bearing CIN U65923UP2015PLC072227, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at S-12/35 SATYAM COMPLEX, PIYARIYA POKHARI TELIYABAG NA VARANASI VARANASI UTTAR PRADESH INDIA 221002
Individual details:
In the matter relating to AWADHESH KUMAR RAJBHAR —————
In the matter relating to AJAY KUMAR ————-
In the matter relating to SANJAY NOHAR KUSHVAHA ——————
C. Provisions of the Act:
(2) 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.
D. Facts about the case:
1. Default committed by the officers in default/noticee – Whereas one of the meetings where Regional Directors were directed to conduct an in-depth examination and submit a report on the surge of Nidhi Companies in Kanpur, Jaipur and Patna by the Secretary of Corporate Affairs vide minutes dated 10.04.2020. This being one of the Nidhi Company identified by ROC, Kanpur on suo-moto basis consequent upon the discussions in the ROC Review workshops with reference to Nidhi Companies. The Inquiry Officer (IO) has observed that the Company has not filed e-form MGT-14 for approval of accounts for the financial year ending on 31.03.2017 to 31.03.2020 as mandated under section 117(1) of the Companies Act, 2013. Accordingly, the Inquiry officer has reported the said violation in the Inquiry Report dated 08.09.2022. The Regional Director vide letter Inq/206(4)/Shivganga Nidhi Limited/RD(NR)/2022/8600 dated 28.09.2022 has accorded the penal action for said non-compliance. Thus, it is evident that the company and its Directors have failed to comply with the provisions of section 117 of the Companies Act, 2013, in filing the copy resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed. And are thus liable for penal provisions.
2. Neither any response has been received from the company and its officers-in-default nor any request of hearing received in this regard
E. Order:
1. This office issued Show Cause Notice on 04.06.2025 to the company and its officer-in-default for not filing e-form MGT-14 mandated to be filed under section 117(1) of the Companies Act, 2013 in respect of resolution passed for approval of accounts for the financial year ending on 31.03.2020 as required vide section 117 (3) (g) of the Companies Act, 2013. More than 30 days have expired, no response has been received till date. The company and its officer-in default have also not requested for hearing. In the said circumstances, penalty as mentioned below is being imposed upon the company as well as its officer-in default as per section 117(2) of the Companies Act, 2013.
2. The details of penalty imposed on the company, officers in default and others are shown in the table below:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required (C) | Penalty Amount (D) | Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | SHIVGANGA NIDHI LIMITED having CIN as U65923UP2015P LC072227 | 169200 | 0 | 200000 | |
| 2 | AWADHESH KUMAR RAJBHAR having DIN as 07118703 | 50000 | 0 | 50000 | |
| 3 | AJAY KUMAR having DIN as 07245338 | 50000 | 0 | 50000 | |
| 4 | SANJAY NOHAR KUSHVAHA having DIN as 07245942 | 50000 | 0 | 50000 |
3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.
4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.
5. Appeal against this order may be filed in writing with the Regional Director, RD Noida within a period of sixty days from the date of receipt of this order, in Form ADJ setting for 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].
6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.
Sanjay Bose,
Registrar of Companies
ROC Kanpur
