Introduction: The Ministry of Corporate Affairs, Bihar, issued an order (No. ROC/PAT/SCN/sec. 12/22762/1909-1912) on March 11, 2024, imposing penalties for the violation of Section 137 of the Companies Act, 2013 by M/S. Shital Sinheshwar Health Care Private Limited. This article delves into the background, appointment of the Adjudication Officer, key facts, and the penalties imposed on the company and its directors.
Detailed Analysis:
Background and Appointment: Shital Sinheshwar Health Care Private Limited, a registered company in Vaishali, Bihar, faced penalties for its failure to file financial statements for the financial years 2016-2017 to 2022-2023. The Ministry of Corporate Affairs appointed an Adjudicating Officer to assess penalties under Section 454 of the Companies Act, 2013.
Key Facts and Violation: The company, despite a notice for default under Section 137, did not file any financial statements, leading to a contravention of Section 137 of the Companies Act, 2013. The directors/officers are held liable for penalties as per Section 137(3), which specifies penalties for non-filing and continuing failure.
Penalties Imposed: Considering the facts and circumstances, the Adjudicating Officer imposed significant penalties. Shital Sinheshwar Health Care faces a penalty of Rs. 9,29,900, while each of the two directors, Shri Sinheshwar Mahto and Shri Shailendra Kishore, incurs penalties of Rs. 3,23,300. The penalties are categorized based on the nature of default for each financial year.
Payment and Appeal Process: The noticee is directed to pay the penalties individually for the company and its directors through e-payment within 90 days of the order. The generated Challan/SRN must be forwarded to the office. An appeal against this order can be filed with the Regional Director within 60 days, accompanied by a certified copy of the penalty order.
Section 454(8) Reminder: The attention of the noticee is drawn to Section 454(8) of the Companies Act, 2013, emphasizing the consequences of non-compliance with this order.
Conclusion: Shital Sinheshwar Health Care Private Limited’s case highlights the importance of adhering to statutory filing obligations. The penalty order, rooted in Section 137 of the Companies Act, 2013, showcases the repercussions of prolonged non-compliance. Companies and their officers are urged to prioritize timely financial statement submissions to avoid financial penalties and legal repercussions.
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Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies, Bihar
4th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbunglow Road, patna-800001
(0512)- 2216150/ 2950121
No.: ROC/PAT/SCN/sec. 12/22762/1909- 1912
Date: 11.03.2024
Order for penalty for violation of section 137 of the Companies Act, 2013
In the Matter of
M/S. SHITAL SINHESHWAR HEALTH CARE PRIVATE LIMITED
CIN: U74140BR2014PTCO22762
Appointment of Adjudication Officer:-
1. The Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014- Ad. II dated 24.03.2015 has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred under 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.
Company:-
2. Whereas, Company M/ s. Shital Sinheshwar Health Care Private Limited, CIN-U74140BR2014PTCO22762 (herein after known as Company) is a registered company with this office under the provisions of the companies Act, 2013 (or previous Acts in force, as applicable) having its registered office situated at 512, Agarpur, Lalganj, Vaishali, Bihar, 844121, India as per MCA website.
Facts about the case:-
3. Whereas, the company is in default for filing its Financial Statements for the financial years 2016-2017 to 2022-2023 with the office of Registrar of Companies, Patna. Hence, this office has issued notice for default under section 137 of the Companies Act, 2013 vide No ROC/ PAT/SCN/Sec-137/ 22762/14211423 dated 31.01.2024.
4. Whereas, this office has not received any reply from the company and its directors. Hence, it appears that the provisions of Section 137 of the Companies Act, 2013 have been contravened by the company and its directors/officers and therefore they are liable for penalty u/s 137(3) of the Companies Act, 2013.
Section 137(3) states that:- “If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may he, 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 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”.
ORDER
5. Having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty of Rs. 9,29,900 (Nine Lakhs Twenty-Nine Thousand Nine hundred) on Company, and Rs. 3,23,300 (Three Lakhs Twenty-Three Thousand Three Hundred only) each on the 2(two) Directors of the company as per Table Below for violation of Section 137 of the Companies Act, 2013 for the financial years 2016-2017 to 2022-2023.
| Nature of defalt | Viol ation of Secti on of the Com pani es Act, 2013 |
Company /Offi-cers to whom penalty imposed | No. of days in defa ult* | Penalty for defaults -(Rs.) as per Section 137(3) of the Act | Total Penalty (Rs.) | Pen-alty Impo-sed (Rs.) [maxi-mum of two lakh rupees in case of a comp-any- and fifty thous-and rupees in case of an officer who is in defa-ult] |
| Non-filing of Financial Statement s for FY 2016-2017 | Secti on 137( 1) | On Company | 2324 | 10000+100/ per day | 10000+2324*100 =242400 | 200,000 |
| On Shri Sinhes-hwar Mahto | 2324 | 10000+100/ per day | 10000+2324*100 =242400 | 50,000 | ||
| On Shri Shailendra Kishore | 2324 | 10000+100/ per day | 10000+2324*100 =242,400 | 50,000 | ||
| Non-filing of Financial State-ments s for FY 2017-2018 | Secti on 137( 1) | On Company | 1959 | 10000+100/ per day | 10000+1959*100 =205,900 | 200,000 |
| On Shri Sinhes-hwar Mahto | 1959 | 10000+100/ per day | 10000+1959*100 =205,900 | 50,000 | ||
| On Shri Shailendra Kishore | 1959 | 10000+100/ per day | 10000+1959*100 =205,900 | 50,000 | ||
| Non-filing of Financial Stateme-nts for FY 2018-2019 | Secti on 137( 1) | On Company | 1594 | 10000+100/ per day |
10000+1594*100 =169400 | 169400 |
| On Shri Sinhes-hwar Mahto | 1594 | 10000+100/ per day |
10000+1594*100 =169,400 | 50,000 | ||
| On Shri Shailendra Kishore | 1594 | 10000+100/ per day |
10000+1594*100 =169400 | 50,000 | ||
| Non-filing of Financial Statements for FY 2019-2020 | Secti on 137( 1) | On Company | 1228 | 10000+100/ per day | 10000+1228*100 = 132,800 | 132,800 |
| On Shri Sinhes-hwar Mahto | 1228 | 10000+100/ per day | 10000+1228*100 = 132,800 | 50,000 | ||
| On Shri Shaile-ndra Kishore | 1228 | 10000+100/per day | 10000+1228*100= 132,800 | 50,000 | ||
| Non-filing of Financial Statements for FY 2020-21 | Secti on 137( 1) | On Company | 863 | 10000+100/ per day | 10000+863*100= 96300 | 96300 |
| On Shri Sinhes-hwar Mahto | 863 | 10000+100/ per day | 10000+863*100= 96300 | 50,000 | ||
| On Shri Shailendra Kishore | 863 | 10000+100/ per day | 10000+863*100= 96300 | 50,000 | ||
| Non-filing of Financial Statement s for FY 2021-22 | Secti on 137( 1) | On Company | 498 | 10000+100/ per day | 10000+498*100= 59,800 | 59,800 |
| On Shri Sinhes-hwar Mahto | 498 | 10000+100/ per day | 10000+498*100=
59,800 |
50,000 | ||
| On Shri Shailendra Kishore | 498 | 10000+100/ per day | 10000+498*100= 59,800 | 50,000 | ||
| Non-filing of Financial Statement s for FY 2022-23 | Section 137(1) | On Company | 133 | 10000+100/ per day | 10000+133*100= 23300 | 23300 |
| On Shri Sinhes-hwar Mahto | 133 | 10000+100/
per day |
10000+133*100= 23300 | 23300 | ||
| On Shri Shailendra Kishore | 133 | 10000+100/ per day | 10000+133*100= 23300 | 23300 |
(* No of days have been calculated from 31.10.2017 to till date of order, i.e., 11.03.2024 for FY 2016-2017 and so on)
6. The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.
7. Appeal against this order may be filled in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata, within a period of 60 (sixty) days from the date of receipt of this order, in Form ADJ (available on Ministry website mca.gov.in) setting forth the grounds of appeal and shall be accompanied by a certified copy of this order (Section 454(5) and 454(6) of the Act read with Companies (Adjudication of Penalties) Rules, 2014}.
8. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order.
(Aparajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna
