In the adjudication order passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies under Section 454 of the Companies Act, 2013, a total penalty of up to Rs. 1.5 lakh was imposed on a private limited company and its two directors for the failure of the company to maintain a registered office.
The company named Alps Life Sciences Private Limited has been registered under the provisions of the Companies Act 2013 and has a paid-up capital of Rs. 5 lakhs as of 31-03-22.
Step by Step Handbook for Filing GST Appeals, Click Here
The facts of this case are interesting, in April 2023, during the investigation conducted by the Narcotics Control Bureau (NCB), it was found that the company was involved in the illegal diversion of pseudoephedrine after inspecting a shipment of medicines in April 2023. During the investigation, officials also discovered that the company involved had never operated from its registered address, which is a clear violation of Section 12(1) of the Companies Act, 2013.
Although a show cause notice was issued by the MCA’s office and sent to the company and its officers in default on January 30, 2024, through e-mail and speed post, no reply was filed.
The adjudicating authority reached a strong conclusion that the firm failed to maintain a registered office as required and thereby violated Section 12 of the Companies Act, 2013.
Read More: Non-Maintenance of Registered Office u/s 12: MCA imposes Rs. 4 lakhs penalty on Company and Directors
Now, Section 12 of the Companies Act, 2013 states that:
Section 12(1) of the Companies Act 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 Actreads, “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. “
Complete Blueprint for Preparing Project Reports, click here
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.”
A total penalty of Rs. 1.5 lakhs was imposed on the company and its 2 directors under section 12(8) of the Companies Act, 2013.
The adjudicating order was passed by Seema Rath, adjudicating officer & Registrar of Companies, NCT of Delhi & Haryana.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
