Director Escapes Penalty Due to Death, But ROC fines Company for Non-Compliance:

Director Escapes Penalty Due to Death, But ROC fines Company for Non-Compliance

ROC Ahmedabad imposes a penalty on the company and its directors under Section 454 of the Companies Act, 2013, for Violation of Section 172 of the Companies Act, 2013.

Penalty Imposed on Milcent Appliances Private Limited for Companies Act Violation

authorSaloni KumaridateOct 18, 2025
Last update on Oct 18, 2025
Director Escapes Penalty Due to Death, But ROC fines Company for Non-Compliance The Registrar of Companies (ROC) Ahmedabad under the Ministry of Corporate Affairs (MCA), Government of India, has an Order for Adjudication (Order ID: PO/ADJ/08-2025/AD/00583), dated August 12, 2025, imposing penalty on Milcent Appliances Private Limited and its directors under Section 454 of the Companies Act, 2013 (‘The Act’) for Violation of Section 172 of the Companies Act, 2013. A. Appointment of Adjudicating Officer The Ministry of Corporate Affairs (MCA), through its Gazette notification number S.O. 831(E) dated 24/03/2015, has made the appointment of an Adjudicating Officer under Section 454 and the Companies (Adjudication of Penalties) Rules, 2014. This officer has the power to examine the case and decide penalties for violations of the Companies Act.
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B. Details of the Company and Individuals The name of the company is Milcent Appliances Private Limited, possessing CIN: U32201GJ1987PTC010122. The company's office is located on the 8th Floor, Shaligram Corporates, C J Marg, Ambli, Ahmedabad, Gujarat - 380058. Individuals involved: This matter is related to an individual named Rohitkumar Jashbhai Patel, possessing DIN: 00088482. The individual resides at Gargi Bunglow, Bh. Atit Bunglow, Gargi Bunglow, Bh. Atit Bunglow, Anand, Gujarat, India, 388325. This matter is related to an individual named Jayshreeben Patel Rohitkumar, possessing DIN: 00868474. The individual resides at Gargi Bunglows, B/H Atit Bunglow Karamsad, Gargi Bunglows, B/H Atit Bunglow Karamsad, Anand, Gujarat, India 388325. These individuals were officers of the company and are responsible for certain defaults. C. Relevant Law According to the Companies Act, if a company or its officers fail to obey any rules where no specific penalty is mentioned, they can be fined:
  • Company: Rs. 50,000, and if the failure continues, Rs. 500 per day (maximum Rs. 300,000).
  • Officers in default: Rs. 50,000, and if the failure continues, Rs. 500 per day (maximum Rs. 100,000).
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D. The Order The Company, through a written representation, informed us that one of the directors, Rohitkumar Jashbhai Patel, had passed away on 10.11.2022, and further stated that the company falls under the scope of a small company. Therefore, no penalty is imposable on the deceased director. Therefore, penalties of Rs. 150,000 and 50,000 have been imposed on the company (Milcent Appliances Pvt Ltd) and Mrs Jayshreeben Patel Rohitkumar, respectively. The company and the officer have been directed to pay the penalty amount within the time limit of 90 days from receiving the order. Payment must be made via the e-Adjudication portal on MCA’s website. Officers must pay from their personal funds. Below are the details for the imposed penalties: Details Table:

Person

Rectification of Default Penalty Amount Additional Penalty per day Maximum Limit
Milcent Appliances Pvt Ltd - Rs. 1,50,000 ₹0

Rs. 3,00,000

Rohitkumar Jashbhai Patel

- Rs. 0 ₹0 Rs. 1,00,000
Jayshreeben Patel Rohitkumar - Rs. 50,000 ₹0

Rs. 1,00,000

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Filing Appeal Any appeal can be filed in writing to the Regional Director, RD Ahmedabad, within 60 days of receipt of the order using Form ADJ, along with a certified copy of this order. Non-payment within the prescribed time may lead to penal consequences as per Section 454(8) of the Companies Act. F. Recipients of the Order

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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