MCA Levies penalty of Rs.309900 on Directors/ Company for Non-Filing MGT-14

The Ministry of Corporate Affairs (MCA) in the matter of CIAN HEALTHCARE LIMITED has imposed a penalty of Rs.309900 on Directors and Company for Non-Filing MGT-14.

Facts about the Case:

a) As per Section 117 of the Companies Act, 2013, A copy of every resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be filed with the Registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed.

b) An Inquiry of the Company under section 206 of the Company Act, 2013 was conducted by this office and it was observed that the secretarial auditor has qualified his report dated 5.09.2020 stating that during the financial year ending 2018-2019 and 2019-2020, the company has availed 179(3) (d) of Companies Act 2013 certain unsecured loans from banks for which the company has also passed necessary resolutions in pursuance to section 179(3)(d) of the Companies Act 2013. However, the company has failed to file e-form MGT-14 in pursuance of provisions of section 117 (3)(g) of the Companies Act 2013. Hence, it is clear that the company has violated the provisions of Section 117(3)(g) of the Companies Act, 2013 for which the company and officers in default are liable for action.

c) The matter was also taken up with the company during the course of the said inquiry and the company had submitted its reply stating that the Company had erroneously missed filing form MGT-14 in pursuance of Section 117(3)(g) of the Companies Act, 2013. However, the non-disclosure was completely unintentional and without any mala-fide purpose on the part of the company the its directors. Upon recognizing the same the company has taken necessary steps in order to rectify said irregularities. Further, we wish to inform that the company is aware of the failure to report the same and in the process of filing an application for condonation of delay under section 460 of the Companies Act, 2013. Furthermore, the competent authority has directed this office to take necessary action in this regard.

d) Accordingly as per directions of the competent authority, the adjudication officer has issued adjudication notice vide notice No-ROCP/ADJ/ Sec-117- 23-24/768-780 dated 27-06-2023 8s 10/01/2024 (hereinafter referred as adjudication Notice) under Section 454(4) read with section117(3)of the Companies Act read with Rule 3(2) of Companies (Adjudication of penalties)2014 to the Company and its officers in default for the violation of the provisions of the act as mentioned in para ‘a & b’ above;

e) A reply to the Adjudication notice was received on 09/10/2023 stating that there is no any Qualification has been given by the Secretarial Auditor in their report dated 05.09.2020, however Secretarial auditor has given an observation that “During the year the company has availed certain unsecured loans from banks for which the company has also passed a necessary resolution in pursuant to section 179(3)(d) of the Companies Act, 2013. However, the company has erroneously failed to file form MGT-14 for the Financial Year 2019-2020 and the Company has filed the MGT-14 form vide SRN-AA4841859.

f) Furthermore, under section 454(4) of the Act read with Rule 3(5) of the Companies (Adjudication Of Penalties) Rules, 2014, Noticee(s) were given an opportunity to be heard by issuing a Notice vide ROCP/ADJ/ Sec117/23-24/2059 TO 2071 dated 21-11-2023 (hereinafter referred as Hearing Notice) to appear before Adjudicating Authority on 30-11-2023, but nobody from the Company attended the hearing.

g) It is seen from the MCA-21 records that the company has filed MGT-14 vide SRN-AA4841859 on 13-09-2023. Hence, the period of default is from 21.12.2020 to 12.09.2023

Order:

The applicant company and its officers, who have defaulted the provisions of section 117(3)(c) of the Act for non-filling Form MGT-14 within the stipulated time as prescribed in the Act and are liable for penalties under section 117(2) of the Act.

In exercise of the powers conferred on the undersigned vide Notification dated 24th March 2015 and having considered the facts and circumstances of the case besides submissions made by the Noticee(s) and after taking into account the factors mentioned herein above, hereby a penalty of Rs.309900 imposed on the officers in default pursuant to Rule 3(12) of Companies (Adjudication Of Penalties) Rules, 2014 and the proviso of the said Rule and Rule 3(13) of Companies (Adjudication Of Penalties) Rules, 2014 r/w General Circular No. 1/2020 dated 02.03.2020 for violation of section 117(1) of the Act.

The Noticee(s)/applicant(s) shall pay the penalty so imposed through the Ministry of Corporate Affairs portal only as per rule 3(14) of Companies (Adjudication Of Penalties) Rules, 2014.

For Official Order Download PDF Given Below: