The Registrar of Companies, Bangalore, passed an adjudication order under Section 454 of the Companies Act, 2013 for violation of Section 155, penalised under Section 159. The individual director had obtained two Director Identification Numbers (DINs), first in 2016 and a second in 2023, due to inadvertent non-recollection of the earlier DIN while incorporating an LLP. Upon discovering the error, the director applied for surrender of the duplicate DIN, but was directed to undergo adjudication. The violation continued for 622 days from 31.05.2023 to 10.02.2025. The director submitted that the default was unintentional and requested leniency. Considering the nature of default, its non-repetitive character, and absence of public harm, the adjudicating officer imposed 25% of the maximum penalty, amounting to ₹90,125. 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/01755 | 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 SURAJ CHANDRASHEKAR ATREYA ______
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. Suraj Chandrashekar Atreya, Director (DIN: 07652164) 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. Suraj Chandrashekar Atreya obtained his first DIN (Director Identification Number) (No. 07652164) on 09.11.2016 which was not used for appointments in any company or LLP. Further, he obtained his second DIN (No. 10186344) on 31.05.2023 for incorporation of Ironchain Ventures LLP which was inadvertently obtained due to non-recollection of his already existing first DIN.
Mr. Suraj Chandrashekar Atreya, upon realisation of the mistake and violation committed, applied to surrender his DIN (10186344) vide DIR-5 SRN AB2676325. 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. Suraj Chandrashekar Atreya has violated the provisions of section 155 of the Act for a duration of 622 days i.e. from 31.05.2023 to 10.02.2025 and is liable for penalty under the provisions of section 159 of the Act.
2. The Director not asked for a hearing and same was not provided. The order is issued based on the application, notice for adjudication and replies received.
E. Order:
1. Mr. Suraj Chandrashekar Atreya, Director (DIN: 07652164) 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. Suraj Chandrashekar Atreya obtained his first DIN (Director Identification Number) (No. 07652164) on 09.11.2016 which was not used for appointments in any company or LLP. Further, he obtained his second DIN (No. 10186344) on 31.05.2023 for incorporation of Ironchain Ventures LLP which was inadvertently obtained due to non-recollection of his already existing first DIN.
Mr. Suraj Chandrashekar Atreya, upon realisation of the mistake and violation committed, applied to surrender his DIN (10186344) vide DIR-5 SRN AB2676325. 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.
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. The Director submitted reply on 06.01.2026 through physically, stating inter alia, that ? ?unawareness of existing DIN and due to technical issues, second DIN was inadvertently obtained. Further, the Director prayed for nominal penalty?. Further, the Director opted for no hearing in the matter and hence, the same has not been provided. This order is issued based on the application, notice for adjudication, and the replies received.
It is established that there is a violation of section 155 of the Act for the duration of 31.05.2023 to 10.02.2025 i.e. 622 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 | SURAJ CHANDRASHEK AR ATREYA having DIN as 07652164 |
90125 | 0 | 360500 |
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
