Ministry of Corporate Affairs, Office of the Registrar of Companies in Bihar, has issued an order imposing a penalty on Manpur Rubber Industries Private Limited and its directors for their non-compliance with Section 92 of the Companies Act, 2013. The company has failed to file its annual returns for the financial years 2016-17, 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22, leading to this penalty.
Analysis: The company and its directors have been found in violation of Section 92(4) of the Companies Act, 2013, which mandates the filing of annual returns within a specified period. In response to the show cause notice, the directors explained that the non-filing was due to the deactivation of their Director Identification Numbers (DINs). However, this explanation was deemed unsatisfactory.
According to Section 92(5) of the Act, the company and every officer in default are liable for a penalty of INR 10,000 for the initial failure to file the annual return, with an additional penalty of INR 100 per day for each day of continuing failure, subject to certain maximum limits. The maximum penalty for a company is INR 2,00,000, while for an officer in default, it is INR 50,000.
Considering the provisions of Section 446B of the Act, which apply to small companies, the penalty imposed is reduced by half. In the case of Manpur Rubber Industries Private Limited, which qualifies as a small company, the penalties are adjusted accordingly.
The order specifies the penalties imposed for each financial year in which the annual returns were not filed. The company and its directors are individually liable to pay the penalties, and the payment should be made through e-payment on the Ministry of Corporate Affairs website within 90 days of the order.
Conclusion: Manpur Rubber Industries Private Limited and its directors have been penalized for their failure to file annual returns as required by the Companies Act, 2013. The penalties imposed take into account the number of days of default and the company’s classification as a small company. The order also provides information on the process for making payment and the option to file an appeal within 60 days of receiving the order.
Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies,
Bihar-Cum-Official Liquidator, High Court, Patna
4th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbungiow Road, Patna-800001
Order No. ROC/PAT/SCN/92/001004/ | Date: 19.06.2023
Order for penalty for violation of Section 92 of the Companies Act, 2013
Manpur Rubber Industries Private Limited
Appointment of Adjudication Officer:‑
1. The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014- 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 (herein after known as Act) read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
Company:‑
2. Whereas, Company M/s. Manpur Rubber Industries Private Limited CIN: U25199BR1973PTC001004 (hereinafter referred to as `Company’) is a incorporated on 18.05.1973 under the provisions of Companies Act, 2013 and having its registered office at – O. Buniadganj, Gaya, Bihar, India as per records maintained in this office.
Facts about the case:‑
3. Whereas, the company is in default for filing its Annual Return for the financial year 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and 2021-2022 with the office of Registrar of Companies, Hence, this office has issued show cause notice for default under section 92 of the Companies Act, 2013 vide No. ROC/ PAT/SCN/Sec-92/ 001004/150-153 dated 02.05.2023.
4. Whereas, this office has received a reply vide email dated 29.05.2023 from the its directors stating that “since DIN of the Directors are deactivated, no returns could he filed”. However, reply of the company is found unsatisfactory. Hence, it appears that the provisions of Section 92 of the Companies Act, 2013 has been contravened by the company and its directors/ officers and therefore they are liable for penalty u/ s 92(5) of the Companies Act, 2013.
Section 92(5):- “If a 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 a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupee in case of a company and fifty thousand rupees in case of an officer who is in default”.
5. Further Section 446B states that “if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not he more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be”.
6. As per clause 85 of section 2 of the Companies Act, 2013, small company means a company whose paid up capital and turnover shall not exceed rupees four crore and rupees forty crore respectively. As per MCA portal, paid up capital of the company- Manpur Rubber Industries Private Limited is Rs. 2,74,000 and as regard to turnover, the company has shown turnover of Rs 0 for the year 2015-16 in the AOC-4 filed with the office for year ending 2015-16. Therefore, the benefits of small company is extended to this company while adjudicating penalty.
ORDER
7. Having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty on Company, and its Directors as per Table Below under section 92(5) of the Act for failure in compliance of section 92(4) of the Companies Act, 2013 for the Financial Years 2016-17, 2017-18, 2018-19, 2019-2020, 2020-21 and 2021-22;
Nature of
|
Violation
|
Company/ Officers to whom penalty imposed |
No. of
|
Penalty for
|
Maximum
|
Penalty Imposed
|
Non- filing of Annual Returns for FY 2016-17 |
Section 92(4) |
Company |
2028 |
10000+100/per day= 10000+2028*100 = 2,12,800 |
2,00,000 |
1,00,000 |
Shri Brijnandan Singh |
2028 |
10000+100/per day= 10000+2028*100 = 2,12,800 |
50,000 |
25,000 |
||
Smt. Manik Raj Devi |
2028 |
10000+100/per day= 10000+2028*100 = 2,12,800 |
50,000 |
25,000 |
||
Shri Manoj Singh |
2028 |
10000+100/per day =10000+2028*100 = 2,12,800 |
50,000 |
25,000 |
||
Non- filing of Annual Returns for FY 2017-18 |
Section 92(4) |
Company |
1663 |
10000+100/per day= 10000+1,663*100= 1,76,300/- |
1,76,300 |
88,150 |
Shri Brijnandan bSingh |
1663 |
10000+100/per day= 10000+1,663*100= 1,76,300/ – |
50,000 |
25,000 |
||
Smt. Manik Raj Devi |
1663 |
10000+100/per day= 10000+1,663*100= 1,76,300/- |
50,000 |
25,000 |
||
Shri Manoj
|
1663 |
10000+100/per day =10000+1,663*100= 1,76,300/- |
50,000 |
25,000 |
||
Non – filing of Annual Returns for FY 2018-19 |
Section 92(4) |
Company |
1298 |
10000+100/per day =10000+1298*100= 1,39,800/- |
1,39,800 |
69,900 |
Shri Brijnandan Singh |
1298 |
10000+100/per day =10000+1298*100= 1,39,800/- |
50,000 |
25,000 |
||
Smt. Manik Raj Devi |
1298 |
10000+100/per day =10000+1298’100= 1,39,800/ – |
50,000 |
25,000 |
||
Shri Manoj Singh |
1298 |
10000+100/per day =10000+1298100= 1,39,800/‑ |
50,000 |
25,000 |
||
Non- filing of Annual Returns for FY 2019-20 |
Section 92(4) |
Company |
932 |
10000+100/per day =10000+932*100= 103,200/-103,200/- |
1,03,200 |
51,600 |
Shri Brijnandan Singh |
932 |
10000+100/per day =10000+932*100= 103,200/- |
50,000 |
25,000 |
||
Snit. Manik Raj Devi |
932 |
10000+100/per day =10000+932*100= 103,200/‑ |
50,000 |
25,000 |
||
Shri Manoj Singh |
932 |
10000+100/per day -10000+932*100= 103,200/‑ |
50,000 |
25,000 |
||
Non- filing of Annual Returns for FY 2020-21 |
Section 92(4) |
On Company |
567 |
10000+100/ per day =10000+567100= 66,700/- |
66,700 |
33,350 |
Shri Brijnandan Singh |
567 |
10000+100/per day =10000+567100= 66,700/- |
50,000 |
25,000 |
||
Snit. Manik Raj Devi |
567 |
10000+100/per day =10000+567100= 66.700/‑ |
50,000 |
25,000 |
||
Shri Manoj Singh |
567 |
10000+100/per day =10000+567100= 66,700/‑ |
50,000 |
25,000 |
||
Non- filing of Annual Returns for FY 2020-21 |
Section 92(4) |
On Company |
202 |
10000+100/per day =10000+202100= 30,200/- |
30,200 |
15,100 |
Shri Brijnandan Singh |
202 |
10000+100/per day =10000+202*100= 30,200/- |
30,200 |
15,100 |
||
Smt. Manik Raj Devi |
202 |
10000+100/per day =10000+202100= 30,200/- |
30,200 |
15,100 |
||
Shri Manoj Singh |
202 |
10000+100/per day =10000+202100= 30,200/- |
30,200 |
15,100 |
(* No of days have been calculated from 30.11.2017 to till date, i.e, 19.06.2023 for FY 2016-17 and so on)
8. The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website www.mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.
9. Appeal against this order may be filled in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata, within a period of 60 (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}.
10. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this
(A arajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum‑
Official Liquidator, Patna
Why was the reason of DIN deactivation unsatisfactory? Is there a way to file without active DIN?