Penalty Against Company Reduced After Regional Director Corrects Default Period
The Regional Director, in one of its significant orders, reduced the penalty amount for the violation of Section 12 of the Companies Act, 2013, as the company had provided the intimation of its registered address change. The RD then calculated the correct days of defaults, which were fewer than what the ROC had calculated in its penalty order.
The Registrar of Companies (ROC) issued a letter dated 30.03.2023 to the company, Yagreshaani Micrope Association and its director, but it was returned undelivered from the registered office of the company, ‘Smt. Guddi Bhat, W/o Alok Kumar, Chandwa, Office of SP Bhojpur, PIN-802301, Bihar. The ROC claimed the company did not properly maintain its registered office, violating the provisions of section 12 of the Companies Act.
The ROC issued a show-cause notice dated 19.05.2023 to the company and its officers, but it also came back undelivered. Therefore, the Registrar finally imposed a penalty of Rs 49,000 each on the company and its director (Total Rs 1,96,000) from 30.03.2023 till the date of the order, 06.07.2023, i.e., a total of 98 days of default. Here is the detailed information on the penalty levied by the ROC:
The company, Yagreshaani Micrope Association, filed an appeal before the Regional Director, Eastern Region, Ministry of Corporate Affairs (MCA), Kolkata, to challenge the penalty order of the ROC for the violation of Section 12 of the Companies Act.
The company’s Authorised Representative said that the company had moved its registered office to another address from 14.03.2023, and this was also updated to the ROC in the Form INC-22 filed by the company on 06.04.2023. This new address was also updated in the Master Data of the Company on the MCA Portal. The company contended that even though they have updated the address, the ROC still sent the SCN to them at their old registered office address. The directors have also replied to the notices, intimating about the shifted registered office, the company said.
The RD observed that the company had duly filed Form INC-22 through the SRN AA1820591 on the MCA Portal on 06.04.2023, informing about the new address of its registered office with effect from 14.03.2023, and it was also shown in the Master data of the company on the MCA portal. After the detailed observation, the RD found that the violation took place from the date of the letter issued by ROC, Patna, on 30.03.2023, to the date of filing Form INC-22 dated 06.04.2023. Therefore, the actual number of days of default is 8 days. The penalty was reduced as follows:
Therefore, the total penalty of the company and its three directors was reduced to only Rs 16,000 from Rs 1,96,000. The company was directed to pay the penalty amount within 90 days.
Cas Citation: Yagreshaani Micrope Association (RD, Kolkata); Application No. RD/ER/454/23/23/Appeal/5758; 27/10/2025
