F.No:9/65/ADJ/SEC. 203/2013/ANDHRA PRADESH /RD(SER)/2022/6123
BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION
MINISTRY OF CORPORATE AFFAIRS, HYDERABAD
IN THE MATTER OF COMPANIES ACT, 2013
IN THE MATTER OF ATR CARS PRIVATE LIMITED
1. M/s. ATR Cars Private Limited
2. Mr. Avnash Anumolu, Director
3. Mr. Ammaji Anumolu, Additional Director
Appellants
Date of hearing : 15.11.2022
Present : Mr. P. Srikant Kumar, Practicing Company Secretary
ORDER
This is an appeal filed under section 454(5) of the Companies Act, 2013 by the above appellants in e-form ADJ vide SRN F28227858 dated 08.10.2022 against the adjudication order No.ROC(V)/ADJ(454)/SEC203(5)/ACPL/2022/1377 dated 18.08.2022 under section 454 passed by the Registrar of Companies, Andhra Pradesh for default in compliance with the requirements of Section 203 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
2. Registrar of Companies in his order of adjudication has stated that the company has failed to appoint Whole Time Company Secretary since the applicable provisions of the Act came into force i.e., on 02.11.2018 to till dated despite paid up capital has exceeded the prescribed limit as stated in the provision of Section 203(1) of the Companies Act, 2013. Hearing was held before Registrar of Companies on 18.08.2022 and after hearing the authorized representative had levied a penalty of Rs.5.00 Lakhs each on the Company, Mr.Avnash Anumolu, Director and Mr. Ammaji Anumolu, Additional Director (total aggregating to Rs.15.00 Lakhs).
3. An opportunity of being heard was given to the Appellants on 15.11.2022. The authorized representative Mr. P.Srikant Kumar, Practicing Company Secretary appeared on behalf of the appellants and reiterated the facts made in the appeal and also submitted that the company is having accumulated losses and not in a position to employ a Whole Time Company Secretary. Though the Company has earned some profits during the last two years, it is not sufficient to make its net worth positive. Still Company appointed Mr. Ghanshyam Ravikant Sharma as Whole Time Company Secretary on 01.09.2022 and considering the same has requested to waive off the quantum of penalty as levied by Registrar of Companies.
4. Though there is a default committed, there is a ground in interfering with the impugned adjudication order of Registrar of Companies to the extent of reducing the quantum of penalty. I deem it would meet the end of justice, if the penalty imposed is reduced for Company to Rs.83,850/-, Mr.Avnash Anumolu, Director and Mr. Ammaji Anumolu, Additional Director to Rs.43,850/- each (total aggregating to Rs.1,71,550/-). The appellants are directed to comply with this order also provisions of Section 454(8) of the Companies Act, 2013 read with Companies (Adjudication of Penalties) Rules, 2014.
5. Accordingly, penalty was paid by the Company amounting to Rs.83,850/-, Mr.Avnash Anumolu, Director and for Mr. Ammaji Anumolu, Additional Director for Rs.43,850/- each (total aggregating to Rs.1,71,550/-) vide SRN X30131866, X30134084 and X30133938 dated 12.12.2022. Accordingly this order is issued to the Appellant Company with a copy to Registrar of Companies, Andhra Pradesh and Joint Secretary, E-Governance Cell, Ministry of Corporate Affairs, New Delhi for information and necessary action.
Issued under my hand and seal on this the 17th day of January 2023.
(B. MOHANTY)
REGIONAL DIRECTOR(SER)
