The Registrar of Companies, Bangalore, passed an adjudication order under Section 454 of the Companies Act, 2013 for violation of Section 155, punishable under Section 159. The director had originally obtained a DIN in 2013 but inadvertently obtained a second DIN in 2021 during incorporation of a company, resulting in duplication. Upon discovering the error, the director applied for surrender of the duplicate DIN; however, adjudication was required for the violation. The default continued for 1462 days from 30.10.2021 to 30.10.2025. After issuance of show cause notice and hearing, the authority concluded that the violation was established. Considering that the default was non-repetitive, unintentional, and caused no public harm, a reduced penalty of 25% of the maximum was imposed. Accordingly, a penalty of ₹1,95,125 was levied. The director was directed to rectify the default and pay the penalty within 90 days, with a right to appeal within 60 days.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Bangalore
Registrar Of Companies, ‘E’ Wing, 2nd Floor, Kendriya Sadana, Kormangala, Bangalore, Karnataka, India, 560034
Phone: 080-25633105,080-25537449
E-mail: roc.bangalore@mca.gov.in
Order ID: PO/ADJ/03-2026/BL/01759 | Dated: 20/03/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 159 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. Individual details:
In the matter relating to SHASHIDHAR MUNIYAPPA_____
C. Provisions of the Act:
If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director 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 further penalty which may extend to five hundred rupees for each day after the first during which such default continues.
D. Facts about the case:
1. Default committed by the officers in default/noticee – Mr. Shashidhar Muniyappa, Director (DIN: 06491074) has filed a suo-motu adjudication application for violation of section 155 of the Act read with Rule 11 of Companies (Appointment of Directors) Rules, 2014. It is seen from the application that Mr. Shashidhar Muniyappa obtained his first DIN (Director Identification Number) No. 06491074 on 07.02.2013.
Thereafter, the applicant became a director in Pranams Construction Private Limited was incorporated on 30.10.2021 under the jurisdiction of this office. During the process of incorporation, Mr. Shashidhar Muniyappa, applied for what eventually was his second DIN and the same was allotted vide DIN 09382667 on 30.10.2021. However, the applicant has come to the realization that the acquisition of DIN 09382667 was inadvertent and in contravention of the Companies Act, 2013.
Mr. Shashidhar Muniyappa, upon realisation of the mistake and violation committed, applied to surrender his second DIN vide DIR-5 SRN AB8703645. The form was sent for resubmission citing violation of section 155 of the Act, and further requiring the director to get the violation of section 155 of the Act adjudicated. Accordingly, this adjudication application has been filed.
In view of the above, Mr. Shashidhar Muniyappa has violated the provisions of section 155 of the Act from 30.10.2021 to 30.10.2025 for a duration of 1462 days and is liable for penalty under the provisions of section 159 of the Act.
2. The Director asked for a hearing and same was provided. The order is issued based on the application, notice for adjudication, replies received and submission made at the time of hearing.
E. Order:
1. Mr. Shashidhar Muniyappa, Director (DIN: 06491074) has filed a suo-motu adjudication application for violation of section 155 of the Act read with Rule 11 of Companies (Appointment of Directors) Rules, 2014. It is seen from the application that Mr. Shashidhar Muniyappa obtained his first DIN (Director Identification Number) No. 06491074 on 07.02.2013.
Thereafter, the applicant became a director in Pranams Construction Private Limited which was incorporated on 30.10.2021 under the jurisdiction of this office. During the process of incorporation, Mr. Shashidhar Muniyappa, applied for what eventually was his second DIN and the same was allotted vide DIN 09382667 on 30.10.2021. However, the applicant has come to the realization that the acquisition of DIN 09382667 was inadvertent and in contravention of the Companies Act, 2013.
Mr. Shashidhar Muniyappa, upon realisation of the mistake and violation committed, applied to surrender his second DIN vide DIR-5 SRN AB8703645 dated 31.10.2025. The form was sent for resubmission citing violation of section 155 of the Act, and further requiring the director to get the violation of section 155 of the Act adjudicated. Accordingly, this adjudication application has been filed.
In view of the above, Mr. Shashidhar Muniyappa has violated the provisions of section 155 of the Act from 30.10.2021 to 30.10.2025 for a duration of 1462 days and is liable for penalty under the provisions of section 159 of the Act.
Pursuant to the adjudication application filed by the Director, show cause notice dated 30.12.2025 was sent to the director through e-Adjudication module and through email. Subsequently, e-hearing notice dated 04.03.2026 was sent which was scheduled on 09.03.2026 and attended by Mr. Manjunath S, Advocate and authorized representative who reiterated the submissions made in the adjudication application filed and requested for nominal penalty. This order is issued based on the application, notice for adjudication, replies received and submission made during hearing.
It is established that there is a violation of section 155 of the Act for the duration of 30.10.2021 to 30.10.2025 i.e. 1462 days which is punishable under section 159 of the Act which provides for a maximum one-time penalty of fifty thousand rupees and further maximum penalty of five hundred rupees for each day after the first during which the default continues.
Therefore, having considered the facts and circumstances of the case and the submissions made by the director through his authorised representative as detailed above, and in exercise of the powers vested under section 454(3)(a) of the Companies Act 2013, I do hereby impose 25% of the maximum penalty in the following manner on the director considering the nature of default, its non-repeating nature and no injury caused to public interest in accordance with provisions of Rule 3(12) of the Companies (Adjudication of Penalties) Rules, 2014.
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 | SHASHIDHAR MUNIYAPPA having DIN as 06491074 | 195125 | 0 | 780500 |
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 Bangalore 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.
Manoj Bang,
Registrar of Companies
ROC Bangalore
