F.No:9/72/ADJ/SEC. 203/2013/ANDHRA PRADESH /RD(SER)/2022/5492
BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION
MINISTRY OF CORPORATE AFFAIRS, HYDERABAD
IN THE MATTER OF COMPANIES ACT, 2013
IN THE MATTER OF SAUMYA MEDICAL CARE AND MEDIA LIMITED
1. M/s. Saumya Medical Care And Media Limited
2. Mr. Suresh Chintamaneni, Managing Director
Date of hearing :15.11.2022
Present : Mr. Sri Krishna Chintalapati, Practicing Company Secretary
This is an appeal filed under section 454(5) of the Companies Act, 2013 by the above appellants in e-form ADJ vide SRN F29350832 dated 13.10.2022 against the adjudication order No.ROC(V)/ADJ(454)Sec.203(5)/SMML/2022-23/1461 dated 18.08.2022 under section 454 passed by the Registrar of Companies, Andhra Pradesh for default in compliance with the requirements of Section 203 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
2. Registrar of Companies in his order of adjudication has stated that the company has failed to appoint Whole Time Company Secretary as specified in Section 203(1) of the Companies Act, 2013. Hearing was held before Registrar of Companies on 18.08.2022 and after hearing the authorized representative had levied a penalty of Rs.5.00 Lakhs each on the Company, Mr. Suresh Chintamaneni, Managing Director, Ms. Madhavi Rani Chintamaneni and Ms. Saumya Chintamaneni, (total aggregating to Rs.20.00 Lakhs).
3. Appellants in the present appeal has stated that the company is taking effective steps for appointment of Whole Time Company Secretary. Due to Covid-19 pandemic, company’s business operations were hit and the company had lack of funds. There were challenges of high-cost compliances with technical changes in hospital industries. Company had been endeavoring to appoint a Whole Time Company Secretary, but many of the candidates were unwilling to join in the Company as it is not in a cosmopolitan area. However, Company has appointed Ms. Neha Luhadiya as Whole Time Company Secretary with effect from 01.07.2022.
4. An opportunity of being heard was given to the Appellants on 15.11.2022. The authorized representative Mr. Sri Krishna Chintalapati, Practicing Company Secretary appeared on behalf of the appellants and reiterated the submissions made in the appeal and also stated that the company was in the business upto 2012. After the same it is not carrying any business and only lease rent and interest income constitute the company’s income. Company is as on date having only one employee and some litigation is continuing in DRT for recovery of loans sanctioned to the Company by HUDCO. Further stated that Managing Director is the person who is in charge of day to day affairs and other directors who are wife and daughter of the Managing Director and hence not to be penalized and requested for waiver of the penalty as levied by Registrar of Companies.
5. Though there is a default committed, there is a ground in interfering with the impugned adjudication order of Registrar of Companies to the extent of reducing the quantum of penalty. I deem it would meet the end of justice, if the penalty imposed is reduced for Company and Mr. Suresh Chintamaneni, Managing Director to Rs.63,870/- each (total aggregating to Rs.1,27,740/-) and penalty imposed on Ms. Madhavi Rani Chintamaneni and Ms. Saumya Chintamaneni are waived as the Company is having Managing Director, who is the officer in default.
6. Accordingly, penalty was paid by the Company and Mr. Suresh Chintamaneni, Managing Director to Rs.64,000/- each (total aggregating to Rs.1,28,000/-) vide SRN X28819712 and X28819688 dated 29.11.2022. Accordingly this order is issued to the Appellants with a copy to Registrar of Companies, Andhra Pradesh and Joint Secretary, E-Governance Cell, Ministry of Corporate Affairs, New Delhi for information and necessary action.
Issued under my hand and seal on this the 29th day of December 2022.