The Registrar of Companies, Delhi initiated adjudication proceedings against Instant Supply Chain Solutions Private Limited and its officers for violating Section 10A(2) of the Companies Act, 2013. The company, incorporated on 27 November 2019, was required to file a declaration of commencement of business in Form INC-20A within 180 days, with an additional 180-day extension granted through a 2020 circular. Although the form was eventually filed on 18 September 2020, the company admitted that it commenced business and exercised borrowing powers much earlier, supported by bank statements and a resolution dated 1 December 2019. After issuing show cause notices and considering the company’s reply acknowledging the lapse, the adjudicating officer held that the delay of 293 days amounted to non-compliance. Penalties of ₹50,000 on the company and ₹1,00,000 each on two officers were imposed, with directions to pay within 90 days and rectify the default. Appeal rights were also outlined.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Delhi
Registrar Of Companies, 4th Floor, IFCI Tower, 61, Nehru Place, New Delhi, Delhi, India, 110019
Phone: 011-26235703,26235708
E-mail: roc.delhi@mca.gov.in
Order ID: PO/ADJ/11-2025/DL/00973 Dated: 28/11/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 10A(2) 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 INSTANT SUPPLY CHAIN SOLUTIONS PRIVATE LIMITED [herein after known as Company] bearing CIN U63030HR2019PTC083859, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at 1401 , 14TH FLOOR, OCUS MEDLEY, SECTOR 99, NA GURUGRAM GURGAON HARYANA INDIA 122505
Individual details:
In the matter relating to JASVEER SINGH [herein after known as individual] ——
In the matter relating to BHAGAT SINGH [herein after known as individual] ——-
C. Provisions of the Act:
If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – 1. That the Company has filed Suo-moto application for in e-form GNL-1 vide SRN: F98647969 dated 16.09.2024 for violation of Section 10A of the Companies Act, 2013.
2. That the company was incorporated on 27.11.2019 and in terms of provision of Section 10A, the company shall not commence any business or exercise borrowing powers unless a declaration is filed by a director within a period of 180 days of date of incorporation in form INC-20A.
3. That in pursuance to General Circular No. 11/2020 dated 24.03.2020, the companies were permitted to file declaration for commencement in e-form INC 20A with additional period of 180 days and said e-form was filed vide SRN: R56658578 dated 18/09/2020 by the company. However, as submitted in application, the company commenced its operations and exercised its borrowing powers before filing of such form.
Thus, in view of the above, the adjudication officer has reasonable cause to believe that the subject company has not complied with the provision of section 10A of the Companies Act, 2013.
The Company and the Noticees are hereby called upon to show cause as to why penal action under Section 10A(2) of the Companies Act, 2013 should not be initiated for the alleged violation of the provisions of the section 10A of the Act. Further, the company is required to submit the documentary evidence(s) in regard to commencement of business and exercising of borrowing powers.
2. The company and its officers did not request e-hearing in the matter
E. Order:
1. i. Whereas the company has filed suo-moto application for adjudication of penalties for default u/s 10A(1)(a) of the Companies Act, 2013. Keeping in view the facts about the case e-SCN was issued to the company and the officers-in-default on 24.10.2025 for the default u/s 10A(1)(a) of the CA, 2013. The response to the notice was submitted on 06.11.2025.
ii. In the reply, the company and the office-in-default accepted the non-compliance and have stated that the default occurred due to lack of adequate knowledge. Further, it was requested to consider the matter with leniency as the default was unintentional.
iii. Whereas the company was asked to submit documentary evidence for the commencement of business. In its reply, the company submitted copy of bank statement and copy of resolution passed at EGM held on 01.12.2019 whereby the members approved loan u/s 185 of CA, 2013.
Now, in view of the above, it is observed that the company has commenced its business before filing of declaration by directors in e-form INC-20A and the gap between commencement business and filing of said e-form is of 293 days (i.e. 01.12.2019 to 17.09.2020). This resulted in non-compliance of section 10A(1) and penalty is imposed on the company and the officers-in-default as per section 10A (2) of the Act subject to the condition that the same is disclosed in the coming Board Report to maintain the necessary disclosures under Corporate Governance. Further, the submission of the company granting remission in the penalty is not acceded to.
Further, during the present adjudication proceedings, from the material/documents on record(s), prima facie non-compliance(s) as mentioned above have been noticed. In the present adjudication proceeding(s), the non-compliance(s) mentioned above are only being adjudicated and the non-compliances if any, involving aforesaid or any other section under provisions of Companies Act, 2013 shall be taken up separately in accordance with the law for necessary action, if any.
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 | INSTANT SUPPLY CHAIN SOLUTIONS PRIVATE LIMITED having CIN as U63030HR2019P TC083859 | 50000 | 0 | 50000 | |
| 2 | JASVEER
SINGH having DIN as 01272362 |
100000 | 0 | 100000 | |
| 3 | BHAGAT SINGH having DIN as
08623523 |
100000 | 0 | 100000 |
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 Noida 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.
Seema Rath,
Registrar of Companies
ROC Delhi
