No Penalty Imposed by ROC After CIRP Compliance Clarification:

No Penalty Imposed by ROC After CIRP Compliance Clarification The Registrar of Companies (ROC), Kolkata, imposed zero penalty on the company named Varutha Developers Private Limited and its directors even after it failed to file financial statements for the financial year 2023-24.

Also Read

ROC Imposes Penalty Over Non-Maintenance of Functional Registered Office

Backstory of the case The company was alleged to have breached Section 137 of the Companies Act 2013, which mandates that financial statements be submitted to the Registrar within the prescribed time. As per the records, the company failed to file its financial statements for the financial year 2023-24. The department then issued a show-cause notice. In reply, the company stated that it had been admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Kolkata, on December 20, 2023. Following this, the Board of Directors were suspended and handed over to an Interim Resolution Professional (IRP), who later became the Resolution Professional (RP).

Also Read

Section 450 Violation: ROC Fines Company and Director Over Conversion Filing Delay

The company also explained that during the CIRP period, the Resolution Professional was responsible for handling all statutory compliances, including filings under the Companies Act. Apart from compliance, it was stated that, according to the MCA’s General Circular No. 08/2020, the IRP had filed the required forms and updated the company’s status to "Under CIRP." The financial documents and annual return for FY 2023-24 were submitted through the appropriate forms during this period. After considering all the merits, the ROC found the company’s explanation satisfactory. As a result, the Show Cause Notice was withdrawn, and no penalty was imposed on the company or its directors.