Delay of 1670 Days in Filing MGT‑14 and Failure to Report Share Allotment Resolution in MGT‑14: MCA Slaps ₹2 Lakh Penalty on Company [Read Order]

The Ministry of Corporate Affairs (MCA) has imposed a penalty of Rs 2,00,000 on the company for a delay iof 1670 days in filing Form MGT-14 and for the failure to report the share allotment resolution in the same.

The case arose from an application submitted by the company for adjudication of penalties for default. It was observed that the company, BG India Energy Solutions Private Limited, has defaulted in filing Form MGT-14 for reporting the Board Resolution passed for approval of issue/allotment of shares, as required under Section 117(3)(c) read with Section 179(3)(c) of the Companies Act, 2013.

As per the provisions of Section 179(3)(c), the Board of Directors shall approve the issue of securities by passing a resolution at a duly convened Board Meeting. Further, Section 117(3)(c) mandates that such Board Resolution is required to be filed in Form MGT-14 with the Registrar within 30 days of passing the resolution.

It was further observed from the available records that the Company had approved the issue/allotment of shares relating to share application money received earlier. However, the Company has failed to file Form MGT-14 within the prescribed statutory timeline.

The due date of filing form MGT-14 was 01.06.2025, whereas the company filed the form on 27.12.2019 resulting in delay of 1670 Days.

Hence, the Company violated the provisions of Section 117(3)(c) of the Act, attracting

penal provisions under Section 117(2) of the Companies Act, 2013.

Thus, in view of the above facts, the adjudicating officer has reasonable cause to believe that the Company has not complied with the provisions of Section 117(3)(c) of the Companies Act, 2013.

A show cause notice was issued to the company, and the company responded by submitting its reply wherein the company stated that the lapse in filing was neither deliberate nor actuated by any mala fide intent.

The MCA based on the findings imposed a penalty of Rs 2,00,000 on the company for the default.

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