Pending Proceedings on and before 16th Sep 2024 to Continue Under Old Rules: MCA amends Companies (Adjudication of Penalties) Rules [Read Notification]
The proceedings beyond the date of 16th September 2024 are bound by the Rule 3A
MCA – Pending Proceedings – Adjudication of Penalties – Taxscan
MCA – Pending Proceedings – Adjudication of Penalties – Taxscan
The Ministry of Corporate Affairs has amended the Companies (Adjudication of Penalties) Rules, 2014 through notification no. G.S.R. 630(E) dated 9th October 2024. The notification states that the pending proceedings on the date of commencement of the amended rules, that is 16th September 2024, shall be continued under the old rules itself.
In 2024, August 5, vide notification no. G.S.R. 476(E), the ministry has amended the rules and inserted the new Rule 3A with effect from 16th September 2024. Through this new amendment, it has added a provision which clarifies the date on which the rule 3A applies.
The notification states as follows: “Provided that the proceedings pending before the Adjudicating Officer or Regional Director on the date of such commencement shall continue as per provisions of these rules existing prior to such commencement.” The amendment is made to the sub-rule (1) of rule 3A.
Rule 3A outlines the use of an Adjudication Platform. With the implementation of the Companies (Adjudication of Penalties) Amendment Rules, 2024, all proceedings—such as issuing notices, filing replies or documents, presenting evidence, holding hearings, witness attendance, passing orders, and payment of penalties—must be conducted electronically through the e-adjudication platform developed by the Central Government.
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If a person's email address is unavailable for issuing notices or summons, the adjudicating officer must send the notice by post to the last known address or the address available in official records. A copy of the notice must also be stored electronically on the e-adjudication platform. If no address is available, the notice will be posted directly on the e-adjudication platform.
Thus, now it is clarified that the proceedings already pending on ‘such commencement date’ shall not follow this adjudication platform. Here, the commencement date is the date of the implementation of the ‘Companies (Adjudication of Penalties) Amendment Rules, 2024’ that is ‘16th September 2024’. Thus, the proceedings beyond the date of 16th September 2024 are bound by the Rule 3A.
To Read the full text of the Notification CLICK HERE
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