The Order of Adjudication issued by the Registrar of Companies, Punjab and Chandigarh, dated 28th June 2024, concerns the imposition of penalties under Section 454 of the Companies Act, 2013, read with Rule 3 of the Companies (Adjudication of Penalties) Rules, 2014, against Smt. Shashi Singla for obtaining a second Director Identification Number (DIN) in violation of Section 155 of the Companies Act, 2013.
Background and Violation
Details of the Offender: Smt. Shashi Singla, residing in Ward No 17, Ram Basti, Samana, Dist’ict Patiala – 147101, initially held DIN 00599311.
Violation: Section 155 of the Companies Act, 2013 prohibits individuals who already possess a DIN from applying for or obtaining another DIN. Despite this, Smt. Shashi Singla applied for and obtained a second DIN, DIN 10008811, on 1st July 2022, while still holding her original DIN.
Investigation and Proceedings: Upon filing of form DIR-5 for the surrender of the second DIN (10008811), it was flagged that Smt. Shashi Singla held two DINs concurrently. The Regional Director (Northern Region) raised objections, requiring adjudication of the violation before processing the surrender application.
Adjudication Process
Admission of Violation: Smt. Shashi Singla admitted to the violation during the adjudication process conducted by the Registrar of Companies. Her representative, Shri Gaurav Mehta, acknowledged the inadvertent nature of obtaining the second DIN and requested leniency in penalty imposition.
Legal Basis for Penalty: The adjudicating officer referred to Section 159 of the Companies Act, 2013, which stipulates penalties for non-compliance with provisions related to directors, including Section 155. The penalty can extend up to Rs. 50,000 initially, with additional penalties for continuing defaults.
Penalty Imposition:
- Smt. Shashi Singla was fined Rs. 50,000 for the initial default.
- An additional penalty was levied for the 729 days of delay (at Rs. 500 per day), totaling Rs. 3,64,500.
- The total penalty imposed amounted to Rs. 4,14,500.
Appeal and Non-payment Consequences: The order informs Smt. Shashi Singla of her right to appeal within 60 days. Failure to pay the imposed penalty within 90 days may lead to further fines or even imprisonment under Section 454(8) of the Companies Act, 2013.
Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies
Punjab and Chandigarh,
Corporate Bhawan,
Plot No.4-B, Sector 27B, Chandigarh
Phone No.172-2639415, 2639416
Order No ROC/Chd/Adj Order/297 Dated 28/06/2024
Order of Adjudication of Penalty under Section 454 of Companies Act, 2013 read with Rule 3 of the Companies (Adjudication of Penalties) Rules 2014 for Violation of Provisions of Section 155 of the Companies Act, 2013 by Smt. Shashi Singla.
1. Whereas Smt. Shashi Singla W/o Sh Suresh Kumar Singla having DIN 00599311 and residing at Ward No 17, Ram Basti, Samana, Dist’ ict Patiala – 147101
2. Whereas per the section 155 ofthe Companies Act, 2013 which read as under
“No individual, who has already been allotted a Director Identification Number under Section 154, shall apply for, Obtain or process another Dm ector Identification Number”
3. Whereas upon processing of DIR-5 filed vide SRN AA7122859 dated 19 03 2024 by the Office of the Regional Director (Northern Region) with respect to surrender of second DIN (10008811), it was observed that, the applicant has applied for and obtained two DINs on MCA portal i.e DIN 00599311 dated 08 12.2006 (old DIN) and DIN 10008811 dated 01 07 2022 (Second DIN).
4. The Flon’ble Regional Du ector raised the objection to approve the e-form DIR-5 and dll ected to get adjudication of penalty saying that “The DIN holder has taken second DIN in violation of section 155 of the Act and t equtred to get compounded/adjudicated the violation under the provisions of the Companies Act, 2013 to consider the application” Further, the applicant herself has admitted and the same has been verified from e-records that the DIN being surrendered was associated with Futurama Infra LLP. However, DIN surrender can be allowed pursuant to Rule 11 of the Companies (Appointment & Qualifications of Directors) Rules, 2014 subject to compliance of certain condition mentioned in the Rule Furthei more, applicant’s clarification with respect to obtaining of second DIN does not seem satisfactory and it is clear that the 2nd DIN was obtained in violation of Section 155 of the Companies Act, 2013.
5. Whereas Smt Shashi Singla, filed Suo-Moto application/petition under section 454 of the Companies Act, 2013 read with section 155 and 159 of the Companies Act, 2013 for Adjudication of Penalty for obtaining Second DIN inadvertently
6. Whereas the undersigned has reasonable cause to believe that the aforesaid provisions of the Act have not been complied with. and accordingly, this office had issued Adjudication hearing notice to the applicant/authorized representative on 12 06 2024 Whereas in pursuance of the adjudication hearing notice issued to Smt. Shashi Singla, Shri Gaurav Mehta, Practicing Company Secretary, a representative of Smt Shashi Singla has appeared before the undersigned on 21 06.2024 and admitted the violation on behalf of Smt Shashi Singla He also requested to impose lesser penalty as the second DIN was obtained inadvertently
7. In view of the above, upon examination and hearing, the Violation of Section 155 of the Companies Act, 2013 is established for which penalty shall be imposed as per Section 159 of the Companies Act, 2013
8. Whereas Provision of section 159 which leads as under –
Section 159
“If any individual of dii ector of a company makes any default in complying with any of the pi °visions of section 152, section 155 and section 156, such individual or dii ector of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a fiirther penalty which may extend to five hundred rupees for each day after the first during which such default continues “
9. Therefore, in view of the above said violation of Section 155 of the Companies Act, 2013, the undersigned in exercise of the powers vested under Section 454(I) & (3) of the Companies Act, 2013 hereby impose following penalty
| S. No | Name of the Officer default |
Amount of Penalty for 1st default | Additional Penalty for Continuing Offence | Total amount of Penalty Imposed |
| 1 | Smt. Shashi Singla – Director | Rs 50,000/- | Delay days 729 (500*729) = Rs 3,64,500/- | Rs. 4,14,500/- |
(Total Rs, 4,14,500/- as penalty amount) for Violation of Section 155 of the Companies Act 2013.)
10. Whereas sub-section (5) of Section 454 of the Companies Act, 2013 provides that any person aggrieved by an order made by the adjudicating officer under subsection (3) may prefer an appeal to the Regional Director having jurisdiction in the matter and further sub-section (6) provides that every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be pi escribed
11 Please note that as per Section 454 (8) which read as under
(i) Of the Companies Act, 2013, “where company does not pay the penalty imposed by the adjudicating officer or the Regional Director 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 who is in default does not pay the penalty 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”
In case of default in payment of penalty, prosecution will be filed under section 454(8) (i) and (n) of the Companies Act, 2013 without any further notice
12. In terms of the provisions of sub-rule (9) of Rule 3 of the Companies (Adjudication of Penalties) Rules, 2014, copy of the order is being sent to the following
(a) Ms Shashi Singla, Ward No 17, Ram Basti, Samana, Patiala-147101.
(b) Regional Director (Northern Region), Ministry of Corporate Affairs, CGO Complex, Lodhi Road, New Delhi and this order will be uploaded on website of Ministry of Corporate Affairs
(Kamna Sharma)
Adjudicating Officer
Registrar of Companies
Punjab and Chandigarh
