The Registrar of Companies, Chennai passed an adjudication order under Section 454 of the Companies Act, 2013, imposing a personal penalty for violation of statutory Board report disclosure requirements. Following an inspection under Section 206(5), it was found that during FY 2014–15 the company had accepted ₹23.61 lakh from related parties but failed to disclose mandatory details of such deposits in its Board’s Report, as required under Section 134(3)(q) read with Rule 8(5)(v) of the Companies (Accounts) Rules, 2014. Although the company had been struck off in 2019 and one director had passed away, proceedings continued against the remaining director. Despite issuance of adjudication and hearing notices, no response was filed, leading to ex-parte adjudication. Holding the director liable under Section 134(8), the Registrar imposed a penalty of ₹50,000, payable personally within 90 days, with appeal remedies duly specified.
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/12-2025/CN/01089 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 (CIN: U74900TN2014PTC098038) 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 is observed from the financial statements for the financial year 2014-15 that the company has accepted money/ deposit from the related parties amounting to Rs.23,61,500/-. Since the company has accepted money or deposit they have to disclose the details of, deposit accepted the during the year, remain unpaid or unclaimed at the end of the financial year and whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, the number of such cases and the total amount involved shall be disclosed in the Board report, but the company has failed to disclose the details of money so accepted in the Board report. Hence, the company has violated Section 134(3)(q) read with Rule 8(5)(v) of the Companies (Accounts) Rules, 2014″.
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)(q) of the Companies Act, 2013 read with Rule 8(5)(v) of the Companies (Accounts) Rules, 2014.
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.
Rule 8(5)(v) of the Companies (Accounts) Rules, 2014 provides: Matters to be Included in Board?s Report :
(4) Every listed company and every other public company having a paid up share capital of twenty five crore rupees or more calculated at the end of the preceding financial year shall include, in the report by its Board of directors, a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.
(5) In addition to the information and details specified in sub-rule (4), the report of the Board shall also contain – (v) the details relating to deposits, covered under Chapter V of the Act,-
(a) accepted during the year;
(b) remained unpaid or unclaimed as at the end of the year;
(c) whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved-(i) at the beginning of the year;(ii) maximum during the year;(iii) at the end of the year;
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 . Further, the Adjudicating Authority had issued notice on 18.03.2025 for hearing scheduled 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 with in the absence of such person (ex-parte).
E. Order:
1. It is noticed from the Financial Statements for the Financial Year 2014-15, the Company has accepted money/deposit from the related parties amounting to Rs.23,61,500/-. Since the Company has accepted money/deposit they have to disclose the details of, deposit accepted during the year, remained unpaid or unclaimed at the end of the Financial Year and whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, the number of such cases and the total amount involved shall be disclosed in the Board report, but the Company has failed to disclose the details of money so accepted in the Board report. This led to the violation of Section 134(3)(q) read with Rule 8(5)(v) of the Companies (Accounts) Rules, 2014.
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 | 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
