ROC levies penalty of more than 13 Lakh on Company and Directors for Non-Filing of Financials

The Ministry of Corporate Affairs has imposed penalty more than of Rs.13 Lakhs on a Company and its Directors for Non-Filing of Financials.

Penalty for Non-Filing of Financials

Reetu | Jan 11, 2023 |

ROC levies penalty of more than 13 Lakh on Company and Directors for Non-Filing of Financials

ROC levies penalty of more than 13 Lakh on Company and Directors for Non-Filing of Financials

The Ministry of Corporate Affairs(MCA) has imposed penalty more than of Rs.13 Lakhs on a Company and its Directors for Non-Filing of Financials.

Company M/ s. Hotel Holy Crest Bodhgaya Private Limited, CIN: U74900BR2014PTC022431 (herein after known as Company) is a company incorporated on 18.06.2014 under the provisions of Companies Act, 1956/2013 in the state of Bihar and having its registered office situated at 3, Circular Road, Patna, Bihar-800001, India as per MCA website.

Facts of the Case:

The company is in default for filing its Financial Statements since its incorporation 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/137/22431/696-698 dated 22.07.2022.

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(3) of the Companies Act, 2013.

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- Hotel Holy Crest Bodhgaya Private Limited is Rs. 100,000 and as regard to turnover, the company has not filed its balance sheet since incorporation, hence turnover could not be ascertained. Therefore, the benefits of small company cannot be extended to this company while adjudicating penalty.

Whereas, this office had issued “Notice for Hearing” vide No. ROC/PAT/SCN/137 /22431/2035-2037 dated 11.11.2022 to the company and directors/officers in default to appear personally or through authorizsed representative under Rule 3(3), Companies (Adjudication of Penalties) Rules, 2014 on 30.11.2022 at 12.00 PM and also to submit their response, if any, one working day prior to date of hearing i.e. 29.11.2022.

As per MCA record, the company has not filed its Financial Statements since incorporation. Hence the Company and its directors/Officers in default are liable for penalty as per section 137(3) of the Companies Act, 2013.

Order:

Having considered the facts and circumstances of the case, and after taking into account the factors above, MCA hereby impose a penalty of Rs.10,40,500 (Ten Lakhs Forty Thousand and Five Hundred) on Company, and Rs.365,500 (1hree Lakhs Sixty Five Thousand Five Hundred) each on the 2(two) Directors of the company as per Table Below for violation of Section 137 of the Companies Act, 2013 for the financial years 2014-2015, 2015-2016, 201&-2017, 2017-2018, 2018-2019, 2019-2020, 2020-2021 and 2021-2022.

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) 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.

For Official Order Download PDF Given Below:

 

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"


Tags: MCA, ROC