Home Companies Act RD Imposes penalty of Rs. 2,00,000 for Non-Appointment of CS

RD Imposes penalty of Rs. 2,00,000 for Non-Appointment of CS

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RD Imposes penalty of Rs. 2,00,000 for Non-Appointment of CS

RD Imposes penalty of Rs. 2,00,000 for Non-Appointment of CS

The Regional Director (RD) within the matter of PARASKATI CEMENT INDUSTRIES LIMITED, has imposed a financial penalty of Rs. 2,00,000 for Non-Appointment of Firm Secretary (CS).

Particulars in regards to the case:

That is an enchantment filed beneath part 454(5) of the Firms Act, 2013 by the appellants in e-form ADJ vide SRN F60433588 dated 12.04.2023 in opposition to the adjudication order F.No. ROCH/U45209TG2008PTC057739/TELANGANA/203 of 2013/2023 dated 28.02.2023 beneath part 454 handed by the Registrar of Firms, Telangana for default in compliance with the necessities of Part 203 learn with Rule 8A of the Firms (Appointment and Remuneration of Managerial Personnel) Guidelines, 2014.

Registrar of Firms in his order of adjudication has said that the corporate pursuant to the appliance for the Scheme of Amalgamation between Transferor Firm (Turbotech Constructions Personal Restricted) and Transferee Firm (Parasakti Cements Industries Restricted), the question was raised by the Regional Director, SER for non-appointment of Firm Secretary within the Transferor Firm. In response, the Transferor Firm has submitted the adjudication utility earlier than Registrar of Firms, Hyderabad for violation of provisions of Part 203(1) of the Firms Act, 2013 pursuant to part 203(10) of the Act r/w Rule 8A of Firms (Appointment and Remuneration of Managerial Personnel) Guidelines 2014 was required to nominate Entire Time Firm Secretary inside six months i.e. on or earlier than 30.9.21.

Nonetheless firm has not appointed Entire Time Firm Secretary inside a interval of six months i.e., from 31.03.2021 to 30.09.2021. The corporate has appointed the Entire Time Firm Secretary on 19.01.2022 with a delay of 140 days. This delay of appointment of Entire Time Firm Secretary resulted in violation of Part 203(1) of the Firms Act, 2013. Listening to was held earlier than Registrar of Firms on 28.02.2023 and after listening to the licensed consultant had levied a penalty of Rs.5.70 Lakhs on the Firm and Rs. 1.20 Lakhs every for two officers i.e., Mr. B Vijay Kumar and Mr. G Dharma Reddy (whole aggregating to Rs. 8.10 Lakhs).

A possibility of being heard was given to the Appellants on 18.07.2023. The licensed consultant Mr. M Vijaya Kumar, Practising Firm Secretary appeared on behalf of the appellants and reiterated the submissions made within the enchantment and in addition submitted that the corporate pursuant to the appliance for the Scheme of Amalgamation between Transferor Firm (Turbotech Constructions Personal Restricted) and Transferee Firm (Parasakti Cements Industries Restricted), the question was raised by the Regional Director, SER for non-appointment of Entire-Time Firm Secretary within the Transferor Firm. In response, the Transferor Firm has submitted the adjudication utility earlier than Registrar of Firms, Hyderabad for violation of provisions of Part 203(1) of the Firms Act, 2013 pursuant to part 203(1) of the Act r/w Rule 8A of Firms (Appointment and Remuneration of Managerial Personnel) Guidelines 2014 was required to nominate Entire Time Firm Secretary inside six months i.e., on or earlier than 30.09.2021, Nonetheless firm has not appointed Entire Time Firm Secretary inside a interval of six months i.e., from 31.03.2021 to 30.09.2021. Regardless of all these situations the Firm has appointed Entire-time Firm Secretary with impact from 19.01.2022 and complied with the provisions of Part 203 of the Firms Act, 2013 and requested to cut back the quantum of penalty as levied by Registrar of Firms with regard to firm and officers.

Although there’s a default dedicated, there’s a floor in interfering with the impugned adjudication order of Registrar of Firms to the extent of decreasing the quantum of penalty as imposed beforehand.

Considering the info of the enchantment and submissions made by the licensed consultant. It might meet the top of justice if the penalty imposed by Registrar of Firms is decreased for the Firm to Rs. 1,00,000 and for two officers i.e., Mr. B Vijay Kumar and Mr. Dharma Reddy to Rs. 50,000 every (whole aggregating to Rs. 2,00,000). The appellants are directed to adjust to this order and in addition provisions of Part 454(8) of the Firms Act, 2013 learn with Firms (Adjudication of Penalties) Guidelines, 2014.

For Official Order Obtain the PDF Given Under:

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