The Registrar of Companies (ROC) Cuttack has issued an Order for Adjudication of Penalty on October 17, 2025, against MAGNUM ESTATES LIMITED and its three directors for the violation of Section 77 of the Companies Act, 2013. The penalty has been imposed under Section 86 of the Act. The default was identified during the review of the company’s financial statements for the year ending March 31, 2019. It was observed that the company’s Secured Loan under the head “Vehicle loans from other Banks” increased from 2,74,038 Indian Rupees as of March 31, 2018, to 6,01,564 Indian Rupees during FY 2018-19. This increase indicated a creation or modification of a charge on the company’s assets. However, the company failed to file the requisite Form CHG-1 for the creation/modification of this charge with the ROC, as mandated by Section 77 read with Rule 3 of the Companies (Registration of Charges) Rules, 2014.
In response to the Show Cause Notice (SCN) dated August 28, 2025, the company submitted a reply stating that it was unable to complete the CHG-1 filing due to a lack of cooperation from the charge-holder bank. The company contended that the bank refused to provide the necessary digital signature, arguing that vehicle hypothecation was already registered under the Motor Vehicles Act, making additional filing under the Companies Act unnecessary. The Adjudicating Officer, however, deemed this explanation unsatisfactory, proceeding to impose the penalty. The order holds both the company and its directors—Ramesh Mahapatra, Geetarani Padhi, and Bibhuti Bhusan Mishra—liable as officers in default for the violation of Section 77.
Consequently, the penalty was imposed under the provisions of Section 86 of the Act. MAGNUM ESTATES LIMITED has been penalized the maximum amount of 5,00,000 Indian Rupees prescribed for a company under this section. Each of the three named directors has also been penalized the maximum individual amount of 50,000 Indian Rupees. The order directs the company and the officers in default to rectify the violation (i.e., file the CHG-1) and pay the applicable penalties within 90 days of receiving the order. The directors are explicitly required to pay their penalties from their personal sources/income. Appeals against this order may be filed with the Regional Director, Kolkata, within sixty days of receipt.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Cuttack
ROC-cum-Official Liquidator, Ministry Of Corporate Affairs, Corporate Bhawan, 2nd & 3rd Floor, Plot No-9(P), Sector-1,CDA,
Cuttack, Odisha, India, 753014
Phone: 0671-2366952
E-mail: roc.cuttack@mca.gov.in
Order ID: PO/ADJ/10-2025/CT/00795 Dated: 17/10/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 86 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 MAGNUM ESTATES LIMITED [herein after known as Company] bearing CIN U74102OR1993PLC003346, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at 132A,SECTIOR-A,ZONE AMENCHESWAR INDUSTRIAL EASTATE NA BHUBANESWAR ORISSA INDIA 751010
Individual details:
In the matter relating to RAMESH MAHAPATRA [herein after known as individual] having DIN 00628087 and having its address at
In the matter relating to GEETARANI PADHI [herein after known as individual] having DIN 00628185 and having its address at
In the matter relating to BIBHUTI BHUSAN MISHRA [herein after known as individual] having DIN 00634715 and having its address at
C. Provisions of the Act:
If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – It is observed from the Financial Statements for the year ending 31.03.2019 that as on 31.03.2018, Secured Loan under the Head ?Vehicle loans from other Banks? was Rs.2,74,038 and the same has been increased to Rs.6,01,564 during the Financial Year 2018-19. But, it is seen that the company has not filed CHG-1 for creation/modification of Charge with this office in this respect as required under Section 77 of the Companies Act, 2013 read with Rule 3 of the Companies (Registration of Charges) Rules, 2014.
2. N. A.
E. Order:
1. Facts about the case : It is observed from the Financial Statements for the year ending 31.03.2019 that as on 31.03.2018, Secured Loan under the Head Vehicle loans from other Banks was Rs.2,74,038 and the same has been increased to Rs.6,01,564 during the Financial Year 2018-19. But, it is seen that the company has not filed CHG-1 for creation/modification of Charge with this office in this respect as required under Section 77 of the Companies Act, 2013 read with Rule 3 of the Companies (Registration of Charges) Rules, 2014.
Reply of the Company/Directors : In response to the SCN dated 28.08.2025, the company in its reply dated 27.09.2025 has stated that :-
The filing of Form CHG-1 requires digital signatures of (i) company director, (ii) authorised representative of the charge-holder bank, and (iii) a practicing professional.
When approached, the bankers declined to cooperate, stating that vehicle hypothecation already stands registered under the Motor Vehicles Act and additional filing under Companies Act was not necessary.
Consequently, the Company was unable to complete the CHG-1 filing despite its intent.
Order : The submission of the company is not satisfactory. Hence, the A.O. do hereby impose penalty upon the company and its Directors/Officers in default for the relevant period namely:- Magnum Estates Limited (company), Shri Ramesh Mahapatra, Ms. Geetarani Padhi, Shri Bibhuti Bhusan Mishra (all are directors of the company) under the provisions of Section 86 of the Companies Act, 2013 for violation of Section 77 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 | MAGNUM ESTATES LIMITED having CIN as U74102OR1993P LC003346 | 500000 | 0 | 500000 | |
| 2 | RAMESH MAHAPATRA having DIN as 00628087 | 50000 | 0 | 50000 | |
| 3 | GEETARANI PADHI having DIN as 00628185 | 50000 | 0 | 50000 | |
| 4 | BIBHUTI BHUSAN MISHRA having DIN as 00634715 | 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 Kolkata 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.
Sudhir Kapoor,
Registrar of Companies
ROC Cuttack
