RD Reject the Appeal under Adjudication Due to Failure late filing

RD Reject the Appeal under Adjudication Due to Failure late filing . In this article, we will take you through the mandatory importance of time limit provided under the companies Act 2013 under Section 454 (6) which states that every appeal under section 454 (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form and such manner and be accompanied by such fee as ma be prescribed.
Applicable Provisions
The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the MCA adjudication of penalties for defaulting in filling of its annual return for the Financial Year 2018-19. The matter was brought before the Regional Director (WR), Mumbai, for consideration.
Facts of the Case with ROC and RD
In the adjudication order of Extol Commercials Limited. ROC, Mumbai has passed the adjudication order on 12/01/2024 whereas, Form ADJ has been filed on 11/09/2024 i.e. 242 days after passing of Adjudication Order.
In the view of the above, this appeal gets dismissed on limitation ground under section 454(6) of the companies Act 2013 without going into the merit of the case with directing the appellant to pay penalty imposed by the ROC within a period of 90 days, failing to which concerned ROC is directed to file prosecution under section 454 (8) of the companies Act, 2013.
Our Observation:
This case highlights the mandatory nature of the time limit prescribed under Section 454(6) of the Companies Act, 2013. The dismissal of the appeal purely on limitation grounds highlights the strict compliance with respect to statutory deadlines, reinforcing the importance of timely compliance. This serves as a significant reminder for companies to diligently track and adhere to regulatory timelines to avoid adverse legal consequences. Furthermore, the directive to pay the imposed penalty within 90 days, failing which prosecution under Section 454(8) would be initiated, demonstrates the stringent enforcement measures in place. Thus, companies must exercise due diligence in filing appeals within the prescribed time frame to safeguard their legal rights and avoid unnecessary penalties
Download MCA Adjudication Order:

In this article, we will take you through the mandatory importance of time limit provided under the companies Act 2013 under Section 454 (6) which states that every appeal under section 454 (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form and such manner and be accompanied by such fee as ma be prescribed.

Applicable Provisions

The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the MCA adjudication of penalties for defaulting in filling of its annual return for the Financial Year 2018-19. The matter was brought before the Regional Director (WR), Mumbai, for consideration.

Facts of the Case with ROC and RD

In the adjudication order of Extol Commercials Limited. ROC, Mumbai has passed the adjudication order on 12/01/2024 whereas, Form ADJ has been filed on 11/09/2024 i.e. 242 days after passing of Adjudication Order.

In the view of the above, this appeal gets dismissed on limitation ground under section 454(6) of the companies Act 2013 without going into the merit of the case with directing the appellant to pay penalty imposed by the ROC within a period of 90 days, failing to which concerned ROC is directed to file prosecution under section 454 (8) of the companies Act, 2013.

Our Observation:

This case highlights the mandatory nature of the time limit prescribed under Section 454(6) of the Companies Act, 2013. The dismissal of the appeal purely on limitation grounds highlights the strict compliance with respect to statutory deadlines, reinforcing the importance of timely compliance. This serves as a significant reminder for companies to diligently track and adhere to regulatory timelines to avoid adverse legal consequences. Furthermore, the directive to pay the imposed penalty within 90 days, failing which prosecution under Section 454(8) would be initiated, demonstrates the stringent enforcement measures in place. Thus, companies must exercise due diligence in filing appeals within the prescribed time frame to safeguard their legal rights and avoid unnecessary penalties