Non-Fling of PAS-3: MCA imposes Rs. 4 lakhs penalty on Company and Directors [Read Order]

In the adjudication passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies, a penalty of Rs. 4 lakhs was imposed on a company and its directors for non-filing of PSA-3.

The company, Shri Ram Nidhi Limited, was registered under the Companies Act, 2013, on 27-10-2015, and its authorised capital is Rs. 50 lakhs.

During the inquiry, it was found that the company had filed MGT-7 for FY 2016, 2017, and 2018 but failed to file PAS-3 after allotting securities. The adjudicating authority observed that this was a violation of Section 39(4) of the Companies Act, 2013, which is punishable under Section 39(5).

Section 39(4) of the Act states that: "Whenever a company having a share capital makes any allotment of securities, it shall file with the Registrar a return of allotment in such manner as may be prescribed."

Section 39(5) of the Companies Act, 2013, reads as follows: "In case of any default under sub-section (3) or sub-section (4), the company and its officer who is in default shall be liable to a penalty, for each default, of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less."

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Although a show cause notice was issued to the company and its officers, no reply was furnished. The adjudicating authority observed that the default was made once when the shares were issued.

A penalty of Rs. 4 lakhs was imposed on the company and its 3  directors under Section 39(5) of the Companies Act, and they were instructed to make an e-payment within 90 days of the receipt of the order. The fine imposed has been properly stated in the order in the table, and Rs 1 lakh was imposed on the company and Rs 1 lakh each on the 3 directors.

It is also vital to note that an appeal against this order should be filed in writing with the Regional Director (Northern Region), Ministry of Corporate Affairs, CGO Complex, Lodi Road, New Delhi, within a period of sixty days from the date of receipt of this order.

This order was issued by Seema Rath, Registrar of Companies & Adjudicating Officer, Uttar Pradesh, Kanpur.

To Read the full text of the Order CLICK HERE

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