Consequences of Missing Details on Letterhead as per Section 12, CA 2013

Consequences of Missing Details on Letterhead as per Section 12, CA 2013. In this article, we will take you through the mandatory Section 12(3)(c) of the Companies Act, 2013 mandates that every company must have its name, address of its registered office, Corporate Identity Number (CIN), along with telephone number, fax number (if any), email, and website addresses (if any) printed on all business letters, billheads, letter papers, notices, and other official publications. This ensures transparency and proper identification of the company in all official communications as demonstrated in the case of Rashmi Hospiaity Services Private Limited. The company’s failure to maintain its bill head asper section 12(3) led to the imposition of penalties by the ROC. Further Section 12(4) provides that if a company fails to comply with this requirement, the company and its officers may be liable for penalties.
However, in the appeal process, the Regional Director (RD) considered the company’s mitigating circumstances and reduced the penalties, highlighting the importance of understanding the consequences of non-compliance and the opportunities for relief when justified reasons are presented.
Applicable Provision
The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the adjudication of penalties for defaulting in section 12 between May 2018 to December 2018. The matter was brought before the Regional Director (WR), Mumbai, for consideration.
Facts of the Case <> ROC and RD
Introduction: The ROC has issued Show cause notice dated 18.12.2019 to the company and its director calling them to show cause for non- compliant of section 12 of the companies Act 2013. In response to the SCN, authorised representative of the company has accepted that the company was non-compliant with section 12 of the companies Act 2013.
Allegation and Initial Findings: Authorised Representative has accepted that company had not mentioned address of its registered office, CIN, along with phone number, fax number on its bill heads between May 2018 to December 2018. However, company has mentioned that the final bills are issued in compliance with section 12 of the Act.
Adjudication and Penalty Imposition: The Adjudicating Officer (A.O.) reviewed the matter and took into consideration the responses from the directors. On 14.01.2022, a penalty was imposed on the company and its directors, for violation.
Appeal and Directorate’s Decision: The company and its directors appealed the penalty order to the Regional Director (Western Region), Mumbai. After hearing the appeal on 23.12.2020, the forum has allowed the appeal to reduce the penalty to be paid by the company.
Penalty Imposed
The ROC, after considering the responses, imposed a penalty as per section 12 (4) on per applicants for failure to make compliance under section 12(3(c) of the companies Act 2013 as follows:

On Company: Rs 1,00,000

On 2 Directors: 1,00,000 each

Penalty Reduce
Concerned RD accept the appeal of the company on the basis of facts and circumstances presented by them and directed to the representative of the appellant company that the revised penalty to be paid latest by 08.01.2021. Revised amount are as follows:

On Company: Rs, 75,000

On 2 Director: Rs, 75,000 each

Conclusion
The case of Rashmi Hospitality Services Private Limited underscores the significance of complying with Section 12(3)(c) of the Companies Act, 2013, which mandates the inclusion of essential company details on all business correspondence and official documents. The failure to adhere to these requirements can result in penalties, as demonstrated by the initial penalty imposed by the Registrar of Companies. However, the appeal process highlighted the possibility of relief when the company presented valid mitigating circumstances. The Regional Director's decision to reduce the penalties reflects the importance of both accountability and the consideration of justifiable reasons for non-compliance.
Download MCA Adjudication Order

In this article, we will take you through the mandatory Section 12(3)(c) of the Companies Act, 2013 mandates that every company must have its name, address of its registered office, Corporate Identity Number (CIN), along with telephone number, fax number (if any), email, and website addresses (if any) printed on all business letters, billheads, letter papers, notices, and other official publications. This ensures transparency and proper identification of the company in all official communications as demonstrated in the case of Rashmi Hospiaity Services Private Limited. The company’s failure to maintain its bill head asper section 12(3) led to the imposition of penalties by the ROC. Further Section 12(4) provides that if a company fails to comply with this requirement, the company and its officers may be liable for penalties.

However, in the appeal process, the Regional Director (RD) considered the company’s mitigating circumstances and reduced the penalties, highlighting the importance of understanding the consequences of non-compliance and the opportunities for relief when justified reasons are presented.

Applicable Provision

The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the adjudication of penalties for defaulting in section 12 between May 2018 to December 2018. The matter was brought before the Regional Director (WR), Mumbai, for consideration.

Facts of the Case <> ROC and RD

Introduction: The ROC has issued Show cause notice dated 18.12.2019 to the company and its director calling them to show cause for non- compliant of section 12 of the companies Act 2013. In response to the SCN, authorised representative of the company has accepted that the company was non-compliant with section 12 of the companies Act 2013.

Allegation and Initial Findings: Authorised Representative has accepted that company had not mentioned address of its registered office, CIN, along with phone number, fax number on its bill heads between May 2018 to December 2018. However, company has mentioned that the final bills are issued in compliance with section 12 of the Act.

Adjudication and Penalty Imposition: The Adjudicating Officer (A.O.) reviewed the matter and took into consideration the responses from the directors. On 14.01.2022, a penalty was imposed on the company and its directors, for violation.

Appeal and Directorate’s Decision: The company and its directors appealed the penalty order to the Regional Director (Western Region), Mumbai. After hearing the appeal on 23.12.2020, the forum has allowed the appeal to reduce the penalty to be paid by the company.

Penalty Imposed

The ROC, after considering the responses, imposed a penalty as per section 12 (4) on per applicants for failure to make compliance under section 12(3(c) of the companies Act 2013 as follows:

On Company: Rs 1,00,000
On 2 Directors: 1,00,000 each

Penalty Reduce

Concerned RD accept the appeal of the company on the basis of facts and circumstances presented by them and directed to the representative of the appellant company that the revised penalty to be paid latest by 08.01.2021. Revised amount are as follows:

On Company: Rs, 75,000
On 2 Director: Rs, 75,000 each

Conclusion

The case of Rashmi Hospitality Services Private Limited underscores the significance of complying with Section 12(3)(c) of the Companies Act, 2013, which mandates the inclusion of essential company details on all business correspondence and official documents. The failure to adhere to these requirements can result in penalties, as demonstrated by the initial penalty imposed by the Registrar of Companies. However, the appeal process highlighted the possibility of relief when the company presented valid mitigating circumstances. The Regional Director's decision to reduce the penalties reflects the importance of both accountability and the consideration of justifiable reasons for non-compliance.