GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF THE REGISTRAR OF COMPANIES, TAMIL NADU
SHASTRI BHAVAN, II FLOOR, 26, HADDOWS ROAD, CHENNAI-6.
Order No. F.NO.ROC/CHN/KANDAN/ADJ Order/S.134(3)(q)/2022 Date: 8 February, 2023
ORDER OF ADJUDICATION OF PENALTY UNDER SECTION 454 OF COMPANIES ACT, 2013 READ WITH RULE 8 AND 8A OF THE COMPANIES (ACCOUNTS) RULES 2014 FOR VIOLATION OF PROVISIONS OF SECTION 134 OF THE COMPANIES ACT, 2013 BY M/S KANDAN MUTUAL BENEFIT SASWATHA NIDHI LIMITED
1. In the matter of M/s KANDAN MUTUAL BENEFIT SASWATHA NIDHI LIMITED (CIN No: U65992TN1979PLC007717) incorporated on 08.02.1979 under the jurisdiction of Registrar of Companies, Chennai with the registered office situated at Kandan Bhavan7 Menod Street, Purasawalkam, Chennai, Tamil Nadu,600007,India.
2. Whereas, the company was inspected under Section 206(5) of the Companies Act, 2013 by an Officer authorized by the Central Government and the Inspecting Officer has observed, As per MCA Notification bearing GSR No.725 (E) dated 31.07.2018 amending the Companies (Accounts) Rules, 2014 to include (Among ethers) a statement in the Board’s Report on the compliance under the POSH Act.
3. As per Rule 8 and 8A of the Companies (Accounts) Rules,2014 other than one person Company or small company shall give a statement that the company has complied with the provisions relating to the constitution of Internal Complaint under the Sexual Harassment of women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 to be made with effect from 31.07.2018.
4. Whereas pursuant to Section 134(3)(q) of the Companies Act, 2013, There shall be attached to statements laid before a company in general meeting, a report by its Board of Directors, Which shall include such other matters as may be prescribed.
5. However, it is observed form the Board’s Report that the company has not made disclosures on the same in the Financial Statements for the years 2019-2020.
6. Whereas Regional Director, Ministry of Corporate Affairs, Chennai vide letter dated 06.09.2021 issued directions to take necessary action against the defaulters of the provisions of the Companies Act, 2013 and 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 Notice to the Company and Director vide Show Cause Notice F.No.76/Roc/Chn /Kandan/ 7717/ S.134 /P.27/Inspn Follup/2022 dated 19.09.2022.
7. Whereas on the basis of Adjudication notice of hearing issued by this office on 28.11.2022, the authorized representatives of the Company Shri. Balu Sridhar, Practising Company Secretary had attended the hearing on 13.12.2022 at 12:00 Noon for adjudicating penalty for violations committed. He had also admitted the violations of the provisions of the Act in principle and requested for a lienient view of the matter.
8. Whereas as per Section 134(8) — “If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees”
Therefore in view of the above said violation of Section 134(3)(q) of the Companies Act, 2013, the undersigned in exercise of the powers vested to him under Section 454(1) & (3) of the
Companies Act, 2013 hereby impose a penalty of Rs.3,00,000/- to the company and Rs.50,000/- each to the officers in default viz., 1.Shri Daggolu Loganathan Thulasiram (Totalling Rs.3,50,000/- as penalty amount).
9. 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 sub-section(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 form 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 prescribed.
10. Please note that as per Section 454(8) (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 (ii) of the Companies Act, 2013 at your own costs without any further notice. Alongwith the penalty to be imposed and the same should be submitted.
(K.G.J Y SEPH JACKSON)
REGISTRAR OF COMPANIES/
1. F.NO.ROC/CHN/KANDAN/ADJ/134(3)(q) r/w Rule 8 and 8A/2022
M/s. KANDAN MUTUAL BENEFIT SASWATHA
Kandan Bhavan, 7 Menod Street,
Tamil Nadu-600 007.
2. F.NO.ROC/CHN/KANDAN/ADJ/134(3)(q) r/w Rule 8 and 8A/2022
Shri. Daggolu Loganathan Thulasiram
Managing Director, M/s. KANDAN MUTUAL BENEFIT
SASWATHA NIDHI LIMITED,
14/107, SRP Colony, 1st Main Road,
Jawahar Nagar,Chennai-600 082.