The Registrar of Companies, Chennai passed an adjudication order under Section 454 of the Companies Act, 2013, imposing a penalty for violation of Section 134(3)(n) read with Section 134(8). The case arose from an inspection under Section 206(5), which found that the Board’s Report for FY 2014–15 failed to disclose the company’s risk management policy, a mandatory requirement. Although the company had been struck off in October 2019 and one director had subsequently passed away, proceedings continued against the remaining director. Notices for adjudication and hearing were issued, but no response or appearance was made, leading to ex-parte adjudication. The Registrar held the director liable and imposed a personal penalty of ₹50,000, payable from personal sources within 90 days. The order also outlined the procedure for electronic payment, rectification of default, appellate remedies, and consequences of non-compliance.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Chennai
Registrar Of Companies, Block No.6,B Wing 2nd Floor, Shastri Bhawan 26, Haddows Road, Chennai, Tamil Nadu, India,
600034
Phone: 044-28276652/28276654
E-mail: roc.chennai@mca.gov.in
Order ID: PO/ADJ/05-2025/CN/00357 Dated: 05/01/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 134(8) 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 APS LIFE SCIENCES PRIVATE LIMITED…………
Individual details:
In the matter relating to AVOODAIYAPPAN SELVAKUMAR………….
C. Provisions of the Act:
(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
D. Facts about the case:
1. Default committed by the officers in default/noticee –
An inspection of books and accounts and other records of APS Life Sciences Private Limited was conducted under Section 206(5) of the Companies Act 2013 by an Officer authorized by the Central Government wherein the observations of the Inspecting Officer are as follows:
“It was observed from the Board report for the financial year 2014-15, the company has failed to furnish the details of risk management policy in the board report. Hence, the company has violated Section 134(3) (n) of the Companies Act, 2013”.
Accordingly, on submission of the Inspection report, the Ministry/ the Directorate has directed to initiate penal action against the defaulters for violation of Section 134(3)(n) of the Companies Act, 2013.
It is noticed that the company was struck off on 25.10.2019 and as per the Para 27.1 & 28.1 of the Inspection report, the director Mr. Avoudiappan Senthilvelu (DIN: 2974637) was expired on 17.07.2020. Hence, action shall be taken against Mr. Avoodaiyappan Selvakumar only.
2. The Adjudicating Authority had issued notice for e- Adjudication on 20.02.2025, but no reply has been received from the director Mr. Avoodaiyappan Selvakumar (DIN: 03073730). Further, the Adjudicating Authority had issued notice on 18.03.2025 for hearing on 20.03.2025. Neither the director nor his authorized representative attended the hearing fixed on 20.03.2025, therefore as per Rule 3(8) of Companies (Adjudication of Penalties) Rules 2014, the matter is being proceeded in the absence of such person (ex-parte).
E .Order:
1. It is noticed that the Company has failed to furnish the details of Risk Management Policy in the Board’s report for the Financial Year 2014-15, which led to the violation of section 134(3)(n) of the Companies Act, 2013. Further it is noticed that the Company was struck off on 25.10.2019 and the Director, Mr. Avoudiappan Senthilvelu was expired on 17.07.2020. Therefore, the Director Mr. Avoodaiyappan Selvakumar is liable as per the provisions of Section 134(8) 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 | Rectification of | Penalty Amount | Additional Penalty | Maximum limit for |
| on whom penalty imposed (B) | Default required
(C) |
(D) | (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Penalty (F) | |
| 1 | AVOODAIYAPPA | Yes | 50000 | 0 | 50000 |
| N SELVAKUMAR having DIN as | |||||
| 03073730 |
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 Chennai 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.
B SRIKUMAR,
Registrar of Companies
ROC Chennai
