The Registrar of Companies (ROC), Chennai passed an adjudication order under Section 454 of the Companies Act, 2013 for violation of Section 137 relating to failure to file financial statements. The company failed to file its financial statements for the financial year 2014–15 within the prescribed time as required under Section 137(1). Earlier, a show-cause notice was issued in 2016 for violations of Sections 92, 96, and 137/129. As no response was received from the company or its directors, a complaint was filed before the Additional Chief Metropolitan Magistrate, Economic Offences Court, Egmore. The court later transferred the matter to the adjudicating authority for disposal under Section 454. Even during adjudication proceedings, the company and its officers failed to respond to notices or attend the scheduled hearing, leading to ex-parte proceedings. The ROC concluded that the company had violated statutory filing requirements and imposed the maximum penalty on the company and its defaulting directors.
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/03-2026/CN/01733 | Dated: 11/03/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 137(3) 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 MAHAVIR ADVANCED REMEDIES LIMITED [herein after known as Company] bearing CIN L24231TN1992PLC022562, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at NO 67/2, III STREET SECOND FLOOR, RAILWAY COLONY, NM ROAD NA CHENNAI CHENNAI TAMIL NADU INDIA 600029
Individual details:
In the matter relating to MANI MURUGADAS RAO __________
In the matter relating to SHANTILAL RAMNARAYAN PUROHIT __________
In the matter relating to SANJAY KUMAR __________
C. Provisions of the Act:
(3) If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the 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 during which such failure continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be 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 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 – The Registrar of Companies had issued show cause notice vide F.No.22562/DROC(BSK)/SCN/2016 dated 26.10.2016 to the Company M/s. MAHAVIR ADVANCED REMEDIES LIMITED and its directors Mr. Mani Murugadas Rao and Mr. Shantilal Ramnarayan Purohit for the contravention of Section 92, 96 and 137/129 of the Companies Act, 2013. As no reply has been received from the Company and its Directors, the DROC had filed a Complaint under section 137(1) read with 137(3) of the Companies Act, 2013 before the Hon’ble Court of Additional Chief Metropolitan Magistrate Economic Offences, Egmore. The Hon’ble Court vide order dated 17.04.2024 transferred the case to the Adjudicating Authority for adjudication under section 454 of Companies Act, 2013.
Pursuant to the Show cause notice and the Complaint filed by the DROC, it is noticed that the Company had failed to file its Financial statements for the Financial year 2014-2015 till the issuance of this notice, which violates section 137(1) of the Companies Act, 2013.
137. Copy of financial statement to be filed with Registrar.
(1) A copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed
In view of the above, it is evident that the company has violated section 137(1) of the Companies Act, 2013 for the Financial Year 2014-15. Therefore, the company and its officers in default are liable for penal action under section 137(3) of the Companies Act, 2013.
2. The Adjudicating Authority has issued notice for e-Adjudication vide SCN/ADJ/01-2026/CN/03472 for defaults under the section 137(3) of the Companies Act, 2013 on 20.01.2026. but no reply has been received from the Officers in default or their Authorized representatives. Further, the Adjudicating Authority had issued notice for e-Hearing on 17.02.2026, e-Hearing scheduled on 20.02.2026. Neither the Officers in default nor their authorized representatives attended the hearing scheduled on 20.02.2026. Therefore, as per Rule 3(8) of the Companies (Adjudication of Penalties) Rules 2014, the matter is being proceeded with in the absence of such person (ex-parte).
E. Order:
1. On perusal of the Complaint filed under section 137(1) read with section 137(3) of Companies Act, 2013 and relevant records, it is noticed that the Company had failed to file its Financial Statements for the Financial Year 2014-15 till the issuance of this notice. In view of the above, it is evident that the Company has violated section 137(1) of the Companies Act, 2013. Therefore, the Company and its officers in default are liable for penal action under section 137(3) 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 | MAHAVIR ADVANCED REMEDIES LIMITED having CIN as L24231TN1992PL C022562 | 200000 | 0 | 200000 | |
| 2 | MANI MURUGADAS RAO having DIN as 05217972 | 50000 | 0 | 50000 | |
| 3 | SHANTILAL RAMNARAYAN PUROHIT having DIN as 06504262 | 50000 | 0 | 50000 | |
| 4 | SANJAY KUMAR having DIN as 05338342 | 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 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
