The Registrar of Companies, Kanpur passed an adjudication order under section 454 of the Companies Act, 2013 imposing penalties for violation of section 117(2) arising from failure to file Form MGT-14 for approval of accounts. During an inquiry conducted under section 206(4), it was observed that the company had not filed the required board resolutions for multiple financial years, including FY 2019-20, as mandated under section 117(1) read with section 179(3)(g). Despite issuance of show cause notices, the company and its officers in default neither responded nor sought a hearing. In the absence of compliance or representation, the Adjudicating Officer proceeded ex parte and held that the statutory default stood established. Considering the prolonged non-filing and continued failure, penalties were imposed on the company and all defaulting directors within the prescribed statutory limits. The order reiterates that filing of Form MGT-14 for approval of financial statements is a mandatory compliance and sustained non-compliance attracts penal consequences under section 117(2).
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Kanpur
Registrar of Companies, 37/17, Westcottt Buidling, The Mall, Kanpur, Uttar Pradesh, India, 208001
Phone: 0512-2310443,2310227,2310323
E-mail: roc.kanpur@mca.gov.in
Order ID: PO/ADJ/02-2026/KN/01550 | Dated: 02/02/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 117(2) OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide itsGazette notification number S.O. 831(E) dated 24/03/2015appointed 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 LOKVIKAS BENEFIT NIDHI LIMITED [herein after known as Company] bearing CIN U67190UP2017PLC093239, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at GURAWALIA KUSHINAGAR NA GORAKHPUR GORAKHPUR UTTAR PRADESH INDIA 274302
Individual details:
In the matter relating to AMBIKA SHARMA . __________________________________
In the matter relating to DILIP SHARMA __________________________________
In the matter relating to PUJA SHARMA__________________________________
C. Provisions of the Act:
(2) If any company fails to file the resolution or the agreement under sub-section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first 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 a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.
D. Facts about the case:
1. Default committed by the officers in default/noticee – SCA MCA vide letter dated 10.04.2020 directed to conduct the Inquiry u/s. 206(4) of the Companies Act, 2013. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ?The Company has not filed Form MGT 14 for the year ending on 31.03.2018 to 31.03.2021 for approval of accounts. Hence, it is non-compliance of Section 117(1) read with 179(3)(g) of the Companies Act, 2013. The penal action to be initiated against the Company and its officers in default for violation of Section 117(1) read with 179(3)(g) of the Companies Act, 2013 which is punishable under Section 117(2) of the Companies Act, 2013?. The said violation was reported by the Inquiring Officer in his report dated 29.04.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/110/2023-O/o DGCoA-MCA dated 02.11.2023 and RDNR vide letter No. Inquiry/206(4)/LokVikas/RD(NR)/2022/3314 dated 10.06.2022 directed this office to take necessary action for non-compliance of section 117(1) read with 179(3)(g) of the Companies Act, 2013 for the financial year 31.03.2020.
2. Neither any response has been received from the company and its officers-in-default nor any request of hearing received in this regard
E.Order:
1. The Company has not filed e Form MGT 14 for FY 2019-20 for approval of accounts as mandated under 117(1) read with 179 (3) (g) of the Companies Act, 2013. Therefore, Show Cause Notice were issued on 26.06.2025 to the company and its officer-in-default for violation of section 117(1) read with 179(3)(g) of the Companies Act,2013. More than 30 days have expired, no response have been received till date. The company and its officer-in default have also not requested for hearing. In the said circumstances, penalty as mentioned below is being imposed upon the company as well as its officer-in default as per section 117(2) 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 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 | LOKVIKAS BENEFIT NIDHI LIMITED having CIN as U67190UP2017P LC093239 | 185300 | 0 | 200000 | |
| 2 | AMBIKA
SHARMA . having DIN as 07805219 |
50000 | 0 | 50000 | |
| 3 | DILIP SHARMA having DIN as
07805228 |
50000 | 0 | 50000 | |
| 4 | PUJA SHARMA having DIN as
08161221 |
50000 | 0 | 50000 |
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.
Sanjay Bose,
Registrar of Companies
ROC Kanpur
