MCA imposes penalty for name wrongly spelt of Company on it's letter head
CA Pratibha Goyal | Dec 26, 2022 |
MCA imposes penalty for name wrongly spelt of Company on it’s letter head
The name of the company is Laxmidurga Constructions Private Limited while the letterhead used by the company showed the name as Lakshmidurga Constructions Private Limited (the word Laxmi is printed as Lakshmi). This letterhead has been used by the company for their correspondence with all including in communicating with the Ministry of Corporate Affairs authorities as well.
The ROC has issued show cause notice dated 20.11.2019 to the company and its directors calling them to show cause for non-compliant of Section 12 of the Companies Act, 2013. In response to the said Show cause notice, the Company submitted its reply dated 26.11.2019 and explained the matter.
The ROC has issued show cause notice dated 20.11.2019 to the company and its directors calling them to show cause for non-compliant of Section 12 of the Companies Act, 2013. In response to the said Show cause notice, the Company submitted its reply dated 26.11.2019 and explained the matter.
The ROC fixed personal hearing on 27.11.2019 to adjudicate the default under Section 12 of the Companies Act, 2013. Ms. Laxmi Joshi, Director of the Company appeared for hearing and submitted that the reply was inadvertently printed on the wrong letterhead of the Company and there was no malafide intention.
The ROC has imposed penalty of Rs.1,00,000/- (Rupees One Lakh only) on the Company and Rs. 1,00,000/-each on three (3) officers of the company who are in default under Section 12 (8) of the Act to whom notice of hearing dated 27.09.2019 was issued for failure to make compliance u/s. 12(1), 12(4) of the Act.
Contention of Company
As a human being, it is quite possible to get typographical error as the starting name of both the Proprietorship and Company is same i.e. “Lakshmi” /”Laxmi” where letter drafting gets done by other staff person or there may be chances of running Auto Correct function in computer system due to which spelling aulon1atkally changed at the time of typing from “Laxmi to Lakshmi”. Such an error was mistakenly, not purposely, written and should be readily remedied · without objection.
The Regional Director revised the penalty from 100,000/- to Rs. 10000 on company and each of the director, which was paid by them.
Click on the link given below to read the order:
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