Penalty of Rs. 12.6 Lakhs levied by ROC on Company and Directors for Non-Appointment of CFO

The Registrar of Company (ROC) in the matter of M/s. Sylph Technolpgies Limited has imposed penalty of Rs. 12.6 Lakhs on Company and Directors for Non-Appointment of CFO.

The Company viz.M/s. Sylph Technologies Limited (CIN- L36100MP1992PLC007102) [herein after known as company] is a registered company with this office under the provisions of Companies Act, 2013 having its registered office situated at 201 E Johari Palace 51 MG Road, Indore Tukoganj, Indore 452001, M.P. as per the MCA website.

Key Texts about the case:

Subsequently, this office had issued show cause notice U/s. 203(1) of the Companies Act, 2013 to the company and its officers in default vide No. ROC-G/Adj.Pen./u/s. 203(1)/Sylph/Tech./2377 to 2381 dated 20.10.2023 to the company and officers in default.

Whereas inquiry u/s. 206(4) of the Companies Act, 2013 is conducted by the IO. The Directorate vide its direction dated 01.05.2023 has directed to ROC, Gwalior to take necessary action in the matter for violation of Section 203(1) of the Companies Act, 2013. During the inquiry u/s. 206(4) of the Companies Act, 2013, the company has no CFO appointed since 2015-16 to 2018- 19. Thus, it appears that the company has violated the provisions of Section 203(1) of the Companies Act, 2013 which attracted penal provisions u/s. 203(5) of the Companies Act, 2013 for the period from 02.11.2018 to 31.03.2019.

On hearing date no person of the company or representative of the director has attended the hearing which was fixed on 30.11.2023.

Order:

Having considered the facts and circumstances of the case and after taking into account the factors above and letter dated 20.10.2023 & 22.11.2023 issued by ROC, Gwalior, it is concluded that the company and its officers in default are liable for penalty as prescribed under Section 203(5) of the Act for default is made in complying with the requirements of Section 203(1) of the Act of the company viz. Sylph Technologies Limited 210 days (i.e. 02.11.2018 to 30.05.2019) in terms of Section 203(1)of the Companies Act, 2013.

Accordingly, Inclined to impose a penalty as prescribed under sub-section 203(5) of the Companies Act, 2013. The penalty of Rs. 12.80 Lakhs imposed on the company and officers.

The penalty is commensurate with the aforesaid failure committed by the notice and penalty so imposed upon the officers-in-default shall be paid from their personal sources/income. It is further directed that penalty imposed shall be paid through the Ministry of corporate Affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 under intimation to this office.

The penalty amount shall be remitted by the company through MCA21 portal within 60 days from the date of order. The company needs to file INC-28 as per the provisions of the act attaching the copy of adjudication order alongwith payment challans.

As per Section 454(8) (i) where a company fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within a period of 90 days from the date of receipt of the copy of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand but which may extend to five lakh rupees.

Where an officer of a company or any other person who is in default fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within a period of 90 days from the date of receipt of the order such officer shall be punishable with imprisonment which may extend to six months or with the fine which shall not be less than twenty five thousands rupees but which may extend to one lakh or with both.

This order is without prejudice to the rights available to this office to initiate separate action including but not limited to the penal actions for contraventions of related, incidental and/or continuing offences/contraventions.

In terms of the provisions of sub-rule 3 of the Companies (Adjudication of Penalties) Rules, 2014 copy of the order is being sent to Sylph Technologies Limited, 201, E-Johari Palace, 51, M.G. Road, Tukoganj, Indore 452001, M.P., Sh. Vineet Shrivastav, Scheme No. 54, A.B. Road, Satya Sai Square, Vijay Nagar, Indore, M.P., Sh. Rajesh Jain, 54, Patrakar Colony, Indore 452001, M.P. and Jayshri Jain, 54, Patrakar Colony, Indore, M.P. RD, NWR, Ahmedabad and will also upload on MCA website.

The adjudication notice stand disposed off with this order.

For Official Order Download the PDF Given Below: