Penalty by ROC for not affixing or paint its name in conspicuous position of Registered Office – Section 12
The matter is related to imposing penalty by ROC on the Company for not affixing or paint its name in conspicuous position of Registered Office as required under Section 12 of the Companies Act, 2013. Brief details of the same are as follows-
Registrar of Companies – Ministry of Corporate Affairs (ROC NCT OF DELHI & HARYANA)
Adjudication order: AXIS PIGMENTS PRIVATE LIMITED
Companies Act, 2013:
ADJUDICATION ORDER IN THE MATTER OF AXIS PIGMENTS PRIVATE LIMITED
FACTS OF THE CASE
- The abovementioned company was in non-compliance of the requirements of section 12(3)(a) of the Companies Act, 2013 for the day i.e. 09.08.2019 on which the inspector has visited the registered office of the company thereafter direction was received from RD(NR) to initiate action u/s 12 of the Companies Act, 2013 in pursuance to the violation as pointed out by the Inspection officer (1.0) in his / her report submitted under section 206 of the Companies Act, 2013.
During inspection, the Inspecting officer physically visited the registered office of the company on 09.08.2019 and found that company had not affixed or paint its name in conspicuous position accordance to the provisions of Section 12(3)(a) which shows that company has made the violation of section 12(3)(a) of the Companies Act, 2013.
- Moreover, Show Cause Notice for default was delivered to the company and its directors. However, in response to SCN director Sh.Rajesh Sharma replied vide its letter dated 17.02.2023 stating that company is law abiding company and admitted that on the date of Inspection by I.0. on 09.08.2019 the board of the company was not fixed, which proves that Company has violated the provision of Section 12(3)(a) of the Company Act, 2013
- Thereafter, ROC Nct Of Delhi & Haryana concluded that the provisions of Section 12(3)(a) of the Companies Act 2013 has been contravened by the Company and therefore it is liable for penalty u/s 12(8) of the Companies Act 2013 .
ADJUDICATION ORDER
- After considering the facts and circumstances of the case and after taking into account the provisions of 12(8) of the Companies Act 2013, Roc NCT Of Delhi & Haryana imposed a penalty of Rs.500/- each on both the directors of the company and also on the Company of Rs.1000/- by taking into account the fact that the concerned company fulfills the criteria of small company under section 2(85) of the companies act, 2013 thus entitled to avail the benefit of reduced penalty under the provisions of section 446B of the companies act 2013.
Refer ROC adjudication order: https://taxguru.in/company-law/penalty-company-affixing-name-conspicuous-position.html
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Author – CS Kanchan Gupta, Company Secretary and Corporate Lawyer
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