ROC Penalises Company Rs 7.4 Lakh for Delay in Making Reappointment of Company Secretary

The Registrar of Companies (ROC) Mumbai has imposed a Rs 7.4 lakh penalty on the company, Alps Hospital Limited, and its directors for violation of Section 203(5) of the Companies Act, 2013.

The company had voluntarily filed an adjudication application under Section 454 of the Companies Act, 2013, admitting the mistake committed by it and its directors by not complying with the provisions of Section 203 of the Companies Act, 2013. The company accepted that it had delayed in making the re-appointment of a full-time company secretary.

The previous Company Secretary (CS) of the company, Mr Sharad Panwar, resigned on May 22, 2021. As per the law, the company was required to make a reappointment for the post within six months, i.e., before November 22, 2021. However, the company made the reappointment of the new CS named Ms Prachi Singh on February 01, 2022, which resulted in a delay of a total of 71 days. The delay contributed to the contravention of Section 203(4), making the company liable for penal action under Section 203(5).

The company asserted that the delay was not intentionally made but due to the second wave of the COVID-19 pandemic, when its primary focus was on providing essential healthcare services. The company further added two directors, Mr Manish Kumar Goyal and Mr Manoj Ajmera, who claimed they were independent directors and should not be treated as officers in default. The ROC accepted this claim and did not impose penalties on them.

In conclusion to the hearing that took place, the ROC imposed a penalty amounting to Rs 5 lakh on the company, Alps Hospital Limited, and Rs 2.4 lakh on two directors, Ms Vandana Ramesh Pakle and Dr Mradul Kaushik (Rs 1.2 lakh on each).

The company and the related directors have been given a time period of 90 days to pay the imposed penalty and rectify the default. If not satisfied with the order, they can challenge it before the concerned Regional Director, Mumbai, within 60 days from the date of receiving the order.