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The Government of India, Ministry of Corporate Affairs, has taken decisive action against Victor Impex Limited for violating Section 137 of the Companies Act, 2013. This order underscores the significance of adherence to statutory obligations and emphasizes the importance of timely submission of financial statements to uphold transparency and regulatory standards in corporate governance.

Victor Impex Limited failed to fulfill its obligation of filing the financial statements within the stipulated timeframe, as mandated by Section 137 of the Companies Act, 2013. Despite the requirement to submit the financial statements within thirty days from the date of the annual general meeting, the company failed to adhere to this requirement for the fiscal year ending on March 31, 2019.

Upon examination, it was revealed that Victor Impex Limited delayed the filing of its financial statements for 363 days. Instead of meeting the deadline of October 30, 2019, the company neglected to file its financial statements within the prescribed timeframe. The financial statements were eventually filed on February 13, 2021, indicating a significant delay.

In response to the company’s non-compliance, the Ministry of Corporate Affairs issued a show cause notice to Victor Impex Limited and its officers in default on October 28, 2020, under Section 454 of the Companies Act, 2013, initiating proceedings for the adjudication of the offense under Section 137(3) of the Companies Act, 2013.

While the show cause notice was dispatched to Victor Impex Limited and its directors, no response was received from the company and its directors. Notices sent to the concerned individuals were either returned undelivered or remained unclaimed, indicating their failure to engage in the adjudication process.

As per the findings from the MCA 21 database and in accordance with Section 454 of the Companies Act, 2013, penalties were imposed on Victor Impex Limited and its officers in default.

The penalty amount was determined based on the gravity of the offense and the duration of the violation, with Victor Impex Limited facing a penalty of Rs. 3,63,000, and its directors facing individual penalties of Rs. 1,36,300 each. The maximum penalty for the company is set at Rs. 10,00,000, while for the directors, it is set at Rs. 5,00,000 each.

Victor Impex Limited and its officers in default are directed to remit the penalty amount through the Ministry of Corporate Affairs portal within 90 days of receiving the order. Failure to comply may result in further punitive action, including fines and potential prosecution under the Companies Act, 2013.

This regulatory action reaffirms the government’s commitment to upholding corporate governance standards and ensuring compliance with statutory requirements. It serves as a reminder to companies and their officers of the importance of fulfilling regulatory obligations in a timely and responsible manner to maintain the integrity of the corporate governance framework.

*****

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF THE REGISTRAR OF COMPANIES
100, “EVEREST”, MARINE DRIVE,
MUMBAI – 400 002
Website : www.mca.gov.in 
e-Mail ID : roc.mumbaiPmca.gov.in

No. ROC(M)/VIL/ADJ-ORDER/6290 to 6294

Dated: 26 Dec 2023

Order for Penalty under Section 454 for violation of Section 137 of the Companies Act, 2013.

IN THE MATTER OF VICTOR IMPEX LIMITED (L51900MH1984PLC068948).

Appointment of Adjudicating Officer: –

1. Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014-Ad.II dated 24.03.2015 appointed the 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 (Adjudicating of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.

Company: –

2. The Company VICTOR IMPEX LIMITED (CIN: L51900MH1984PLC068948) (herein after known as ‘Company’) is a registered company with this office under the provisions of the Companies Act, 2013 having its registered office as per MCA21 Registry at address 3-5 NANABHOY MANSION, 1sT FLOOR, 61, SIR P.M. ROAD, FORT, MUMBAI, Mumbai City, Maharshtra, 40001, India as per the MCA portal.

Relevant Provisions of the Companies Act, 2013

1. Section 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 ***:

Provided that where the financial statements under sub-section (1) are not adopted at annual general meeting or adjourned annual general meeting, suchunadopted financial statements along with the required documents under sub-section (1) shall be filed with the Registrar within thirty days of the date of annual general meeting and the Registrar shall take them in his records as provisional till the financial statements are filed with him after their adoption in the adjourned annual general meeting for that purpose:

Provided further that financial statements adopted in the adjourned annual general meeting shall be filed with the Registrar within thirty days of the date of such adjourned annual general meeting with such fees or such additional fees as may be prescribed ***:

Provided also that a One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty days from the closure of the financial year:

Provided also that a company shall, along with its financial statements to be filed with the Registrar, attach the accounts of its subsidiary or subsidiaries which have been incorporated outside India and which have not established their place of business in India.

Provided also that in the case of a subsidiary which has been incorporated outside India (herein referred to as foreign subsidiary), which is not required to get its financial statement audited under any law of the country of its incorporation and which does not get such financial statement audited, the requirements of the fourth proviso shall be met if the holding Indian company files such unaudited financial statement along with a declaration to this effect and where such financial statement is in a language other than English, along with a translated copy of the financial statement in English.

(2) Where the annual general meeting of a company for any year has not been held, the financial statements along with the documents required to be attached under sub-section (1), duly signed along with the statement of facts and reasons for not holding the annual general meeting shall be filed with the Registrar within thirty days of the last date before which the annual general meeting should have been held and in such manner, with such fees or additional fees as may be prescribed ***.

(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 one thousand rupees for every day during which the failure continues but which shall not be more than ten 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 one lakh 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 five lakh rupees.

Facts about the case: –

3. In terms of provisions of Section 137 of the Companies Act, 2013, the Company was required to file the Financial Statements within thirty days from the date of Annual General Meeting held in pursuance of Section 96 of the Companies Act, 2013.

4. It was observed as per the MCA 21 database, that the Company has delayed in filing its Financial Statements for the Financial Year 2018-2019. The company is in non-compliance of provisions of Section 137 of the Companies Act, 2013 for non-filing of Financial Statements for the financial year ended 31.03.2019 with a delay of 363 days. The due date of filing being 30.10.2019, whereas the Financial Statement was filed by the Company on 13.02.2021.

5. This office had issued Show cause notice to the Company and its Officers in default, dated 28.10.2020 under Section 454 of the Companies Act, 2013 for adjudication of offence under Section 137(3) of the Companies Act, 2013.

Reply of the Company:-

6. No reply has been received from the Company and its Directors as on date.

7. The Show Cause Notice dated 28.10.2020, bearing Consignment No. TM961988358IN’ was sent to Naresh Shivlal Rupani. However, it was returned to this office.

Findings:-

8. As observed from the MCA 21 database, the Company has failed in filing Financial Statement within the time prescribed by the provisions of Section 137 of the Companies Act, 2013.

9. It is also observed, no reply has been received from the Company and its Officers in Default to the Show cause notice till date.

10. As per Section 454 of the Companies Act, 2013 read with Rule 3(11) of Companies (Adjudicating of Penalties) Rules, 2014, if the Company and Officers in default fail to reply or neglect or refuse to appear as required, the adjudicating officer may pass an order imposing the penalty, in the absence of such person after recording the reasons for doing so.

11. As no reply has been received, till date and the violation of the said provision has been established from the MCA 21 database, the following Order has been passed.

12. Further, S.137(3) states that “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”. Hence, penalty is being levied on Mr. Naresh Shivlal Rupani (Director), Girisan Menon (Director) and Chandrakant Shamalji Malani (Director).

ORDER: –

13. In exercise of the powers conferred on me vide Notification dated 24.03.2015 and having considered the facts and circumstances of the case and after taking into account the factors mentioned in the relevant Rules, I am of the opinion that penalty shall be imposed for the default related to non-compliance of section 137 of the Act. The delay, if any, in passing of the order is due to the legal complexities involved in the matter.

14. Having considered the facts and circumstances of the case and after taking into the factors above, I hereby impose a penalty of Rs. 3,63,000/- (Rupees Three Lakhs Sixty-Three thousand only) on Company and 1,36,300/- (Rupees One Lakh Thirty-Six Thousand Three Hundred only) on its Officer in default, as per table given below for violation of provisions of Section 137 of the Companies Act, 2013.

No. of
days of
default (♦)
Penalty imposed on Company/ KMP First default Penalty in (Rs.) Default continues Penalty in
(Rs.)
Total Penalty Levied u/s 137(3) (Rs.) Maximum Penalty in (Rs.)
363 A. Company 363 X 1000 = 3,63,000 3,63,000 10,00,000
B. Directors /KMP
NARESH SHIVLAL RUPANI (DIRECTOR) CHANDRAKANT 1,00,000 363 X 100 = 36,300 1,36,300 5,00,000
SHAMALJI MALANI (DIRECOTR) 1,00,000 363 X 100 = 36,300 1,36,300 5,00,000
GIRISAN MENON (DIRECTOR) 1,00,000 363 X 100 = 36,300 1,36,300 5,00,000

TOTAL PENALTY PAYABLE: – Rs, 7,71,900/-

(♦) The period of violation of provisions under Section 137 of the Companies Act, 2013 is from 31.10.2019 till 27.10.2020. As per signatory details available on MCA-21 portal, the above-mentioned individuals were Officers in default during the period of violation.

(♦) Due date of filing was 30.10.2019 and Financial Statement was not filed. Show Cause Notice was sent on 28.10.2020. Delay / default in days is calculated at 363 days till 27.10.2020.

15. I am of this opinion that, the penalty is commensurate with the aforesaid failure committed by the Noticee.

16. The Noticee shall pay the said amount of penalty through “Ministry of Corporate Affairs” portal and proof of payment be produced for verification within 90 days of receipt of this order.

17. Please note that as per Section 454(8)(i) of the Companies Act, 2013, where Company does not pay the penalty imposed by the Adjudicating Officer or the Regional Director within a period of ninety days from the date of receipt of the copy of the order, the Company shall be punishable with fine which shall not be less than twenty-five thousand rupees, but which may extend to five lakh rupees.

18. Where an Officer of a Company who is in default does not pay the penalty within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine Which shall not be less than twenty five thousand rupees but which may extend to one lakh rupees, or with both.

19. Therefore, in case of default in payment of penalty, prosecution will be filed under Section 454(8)(i) and (ii) of the Companies Act, 2013 at your own costs without any further notice.

20. Further the company and its officers are hereby direct that the penalty amount shall be remitted from their own sources through MCA 21 ports within 60 days from the date of receipt Of order. The company need to file INC-28 as per the provisions of the Act, attaching copy of adjudication order along with payment challans.

21. Appeal if any, against this order may be filed in writing with the Regional Director, Western Regional, Ministry of Corporate Affairs, within a period of sixty days from the date of receipt of this order, in Form ADJ setting forth the grounds of appeal and shall be accompanied by the certified copy of this order. (Section 454 of the Companies Act,2013 read with the Companies (Adjudicating of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019.

22. In terms of the provisions of sub-rule (9) of Rule 3 of Companies (Adjudicating of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019, copy of this order is being sent to the Company and Noticee/s and also to Office of the Regional Director, Western Region, Ministry of Corporate Affairs.

(B MISHRA)
Adjudication officer and Registrar of Companies,
Maharashtra, Mumbai.

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