ROC Chennai Imposes Penalty for Non-Filing of Annual Return under Companies Act, 2013

The Registrar of Companies in Chennai slapped penalties on Shri Shanmugam-Dhanakodi Nidhi Limited and its directors for not filing their annual return on time.
The company got fined Rs 2 lakh, and each director had to cough up Rs 50,000. They were supposed to sort it out within 90 days, but if they are not happy, they can appeal to the regional director within 60 days.

Fact of the case

The ROC started proceeding because the company was missing the filing of Form MGT-7 for the financial year ending March 31st, 2023.
Even after getting a notice and being given a chance to explain, the company didn’t show up for the hearing. They said their operations were minimal and some directors had health problems, but nobody turned up in person.

Issue of the Case

The question was pretty straightforward. Are the company and its directors on the hook for failing to file the return as required by Section 92(5) of the Companies Act, 2013?

Court Observation

Filing an annual return is mandatory under the Act. The company missed the deadline, and their excuses didn’t hold up legally. Not showing up only made things look worse. So clear violation.

Key Highlight of the Judgement

The ROC found the company and its directors liable, slapped on the penalties, and told them to set things right. If they want to fight it, there’s an appeal option.