Non‑Filing of Form MGT‑14: MCA Imposes Penalty of ₹1.69 Lakh on Company and ₹50K on Directors [Read Order]

The Ministry of Corporate Affairs (MCA) has imposed a penalty of ₹3.19 Lakh on the company and its directors for non-filing of Form MGT-14 in respect of the resolution passed for approval of accounts for the financial year ending on 31.03.2020 as required vide section 117 (3) (g) of the Companies Act, 2013.

The case arose from the identification of Shivganga Nidhi Limited, registered in Varanasi, Uttar Pradesh, during a review of Nidhi companies by the MCA.

The Inquiry Officer (IO) has observed that the Company has not filed e-form MGT-14 for approval of accounts for the financial year ending on 31.03.2017 to 31.03.2020 as mandated under section 117(1) of the Companies Act, 2013.

Accordingly, the Inquiry officer has reported the said violation in the Inquiry Report dated 08.09.2022.

Thus, it was evident that the company and its Directors have failed to comply with the provisions of section 117 of the Companies Act, 2013, in filing the copy resolution or any agreement, in respect of matters specified in sub-section (3), together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the

resolution is proposed.

Despite issuing a show cause notice to the company and its directors, namely Awadesh Kumar, Ajay Kumar and Sanjay Nohar Khushvaha but no reply was received even after 30 days passed. The company and its officer in default had also not requested a hearing.

In the said circumstances, a penalty of ₹1,69,200 was imposed upon the company and ₹50,000 on each of the officer-in-default as per section 117(2) of the Companies Act, 2013.

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