MCA Penalizes Company and its Directors for Non- Non-Maintenance of Registered Office u/s 12

In the adjudication order passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty of Rs. 3 lakhs was imposed on the company and its Managing Director for failing to maintain a registered office.

Coming to the facts of the case, the MCA office issued a letter to the company Ramnera Nidhi Limited’s registered office, which was returned with the postal remark “Baar Baar Baar Jane ParTaala Band Milta Hai”, which implies that the company was not continuing its office at the registered address. It was observed by the adjudicating authority that the company was not maintaining a registered officer, or the company did not notify the MCA of the change of its registered office address.

The adjudicating authority observed that the firm failed to maintain a registered office as required and thereby violated Section 12 of the Companies Act, 2013.

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Section 12(1) of the Companies Act, 2013, states that “a company shall, within thirty days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.”

Section 12(4) of the Act reads, “Notice of every change of the situation of the registered once, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar within thirty days of the change, who shall record the same. “

 Section 12(8) of the Act further provides that “if any default is made in complying with the requirement of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but does not exceed one lakh rupees.”

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An adjudication notice, dated 20-3-2024, was sent to the company giving it 15 days to reply, but the letter was undelivered with the remark that the shop was closed down.

The adjudicating officer concluded that the company breached the provisions of Section 12 of the Companies Act and imposed a penalty of Rs. 3 lakhs on the company and the director, and the penalty imposed is accurately mentioned in the order in the table.

Seema Rath, Registrar of Companies & Adjudicating Officer, Uttar Pradesh & Kanpur, issued this order.

To Read the full text of the Order CLICK HERE

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