Penalty of more than Rs.10 Lakhs imposed for non-filing of Annual Return

The Ministry of Corporate Affairs (MCA) in the matter of M/s. Manikraj Motors Private Limited has imposed Penalty of more than Rs.10 Lakhs for non-filing of Annual Return.

M/s. Manikraj Motors Private Limited having CIN:U50103BR2016PTC032112 (herein after known as Company) is a company incorporated on 25.07.2016 under the provisions of Companies Act, 1956/2013 in the state of Bihar and having its registered office situated at 604, Block-A Gagan Apartment Exhibition Road Patna-800001, India as per MCA website.

Fact About Case:

The company is in default for filing its financial statement for the financial year 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 with the office of Registrar of Companies, Patna. Hence, this office has issued show cause notice for default under section 137 of the Companies Act, 2013 vide No. ROC/PAT/SCN/32112/2912-2914 dated 24.03.2023.

Whereas this office has not received any reply from the company and its directors. Hence, it appears that the provisions of Section 137 of the Companies Act, 2013 has been contravened by the company and its directors/ officers and therefore they are liable for penalty u/s 137() of the Companies Act, 2013.

Section 137(3):- “If a company fails to file the copy of the financial statements under sub­-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, Subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the Directors of the company, shall be liable to a penalty of ten thousand rupees and in case of continuing failure. with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.”

Further Section 446B states that “if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be”.

As per clause 85 of section 2 of the Companies Act, 2013, small company means a company whose paid up capital and turnover shall not exceed rupees four crore and rupees forty crore respectively. As per MCA portal, paid up capital of the company- Manikraj Motors Private Limited is Rs.2,90,00,000 and as regard to turnover, it can’t be ascertained as the company has not filed its financial statement. Therefore, the benefits of small company cannot be extended to this company while adjudicating penalty.

Order

Having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty of Rs.7,10,200 (Seven Lakh Ten Thousand and Two Hundred Only) on Company and Rs.2,79,000 (Two Lakh Seventy Nine Thousand Only) each on the 2 (two) Directors of the Company as per Table Below under section 137(3) of the Act for failure in compliance of section 137(3) of the Companies Act, 2013 for the financial years 2016-17 to 2021-22.

The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website wvvw.mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.

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