Penalty Imposed on Ummid Mutual for Failure to file Form MGT-14

The Registrar of Companies, Uttar Pradesh, issued an adjudication order against Ummid Mutual Benefit Nidhi Limited for non-compliance with Section 117 of the Companies Act, 2013. The company failed to file Form MGT-14 for financial years 2017-18 to 2019-20, as required under Section 117(1) read with Section 179(3)(g). Despite being issued a show-cause notice, neither the company nor its directors responded or appeared for a hearing. The default period dates back to 2018, resulting in a total penalty of ₹9.48 lakh for the company and its directors. The adjudicating officer determined that the penalties are commensurate with the violations. The penalty must be paid within 90 days, and an appeal can be filed within 60 days of the order. Non-compliance with the order may result in further legal action.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF REGISTRAR OF
COMPANIES, Uttar Pradesh
37/17, Westcott Building, The Mall,
Kanpur 208001 (U.P.)
 Phone : 0512 — 2310443/2310227

ORDER OF ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 READ WITH RULE 3 OF THE COMPANIES (ADJUDICATION OF PENALTIES) RULES, 2014 FOR VIOLATION OF PROVISONS OF SECTION 117 OF THE COMPANIES ACT, 2013 .

IN THE MATTER OF UMMID MUTUAL BENEFIT NIDHI LIMITED. Appointment of Adjudicating Officer: –

1. The Ministry of Corporate Affairs vide its gazette notification no. S.O. 831(E) dated 24.3.2015, has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of Companies Act, 2013 (hereinafter known as Act) read with Companies (Adjudication of Penalties) Rules, 2014 under the provisions of this Act.

2. Whereas the Company UMMID MUTUAL BENEFIT NIDHI LIMITED has been registered under the provisions of the Companies Act, on 15.03.2017 and is having its registered office situated at JAY PEE GREEN,STAR COURT TOWER-2, 503, GREATER NOIDA, Gautam Buddha Nagar, Uttar Pradesh,201304,India.The authorized capital of the Company is Rs. 2,000,000.00

3. During inquiry, it was observed that the Company has not filed Form MGT-14 for the year ended 31.03.2018 to 31.03.2020 for approval of accounts as mandated under section 117(1) read with179(3)(g) of the Companies Act, 2013. Thus, the company and its Directors have failed to comply with the provisions of section 117 of the Companies Act, 2013, in filing the copy resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed. And are thus liable for penal provisions.

4. Section 117(1) of the Companies Act, 2013 provides that: –

“A copy of every resolution or any agreement, in respect of matters specified in sub­section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be filed with the Registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed within the time specified under section 403:

Provided that the copy of every resolution which has the effect of altering the articles and the copy of every agreement referred to in sub-section (3) shall be embodied in or annexed to every copy of the articles issued after passing of the resolution or making of the agreement.”

Section 117(2) of the Companies Act, 2013 provides that –

“If a company fails to file the copy resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees., and every Officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of fifty thousand rupees.”

5. Accordingly, a Show Cause Notice No. 07/05/Adj/ Ummid Mutual /7470 to 7473 dated 04.03.2024 was issued to the company and its officers in default under section under Section 117 of the Companies Act, 2013, read with Companies (Adjudication of Penalties) Rules, 2014 by this office.

6. The company and its officers in default have failed to furnish any reply to the said Show Cause Notice, hence no hearing was fixed for this matter.

7. Further, neither any representative of the company nor its directors have either furnished their reply or have appeared before the undersigned which has further strengthened the apprehension that the company and its Directors have failed to comply with the provisions of section 117 of the Companies Act, 2013, in filing of copy of resolution, in prescribed e-form MGT-14 for the year ending on 31.03.2018 to 31.03.2021 for approval of accounts as mandated under section 117(1) read with 179 (3)(g) of the Companies Act,2013 with the Registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed within the time specified under section.

8. The date of default in the matter has been taken as 30.09.2018 for the FY ended 31.03.2018,29.09.2019 for the FY ended 31.03.2019,21.12.2020 for the FY ended 31.03.2020 the date on which the Financial statements were approved by the Board of directors and the Company should have filed form MGT-14 for approval of accounts as mandated under section 117(1) read with 179 (3)(g) of the Companies Act,2013 with the Registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed within the time specified under section. The default has been continuing since then.

9. Having considered the facts and circumstances of the case and after taking into account the factors above, I hereby impose penalty as mentioned below in the table. It is of this opinion that penalty is commensurate with the aforesaid failure committed by the Noticee.

(Penalty calculation for company and its officers in default )

8. The Noticee shall pay the amount of penalty by way of Demand Draft in favour of “Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi, payable at Delhi, within 90 days receipt of this order. The Demand Draft shall be forwarded to this office Address.

9. Appeal against this order may be filed in writing with the Regional Director (Northern Region), Ministry of Corporate Affairs, CGO Complex, Lodi Road, New Delhi, within a period of sixty days from the date of receipt of this order, in Form ADJ setting forth 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].

10. Attention is also invited to section 454(8) of the Companies Act, 2013, in the event of non-compliance of this order. In Case appeal is made 0/o Registrar of Companies, U.P. maybe informed alongwith the penalty imposed & the payments made.

Seemat11)
Registrar of Companies & Adjudicating Officer

 Uttar Pradesh, Kanpur.
Dated:19/09/2024

Order No. 07/05/Adj/2024/Ummid Mutual/3765 to 3768