ROC-Chennai issues adjudication order u/s 454 for Shri Narayani Nidhi Ltd violating Sec.158(1)

ROC-Chennai issues adjudication order u/s 454 for Shri Narayani Nidhi Ltd violating Sec.158(1). In this article, we will take you through the mandatory provisions under Section 158 of the Companies Act, 2013. As per section 158(1) of the Companies Act, 2013, Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.  
Applicable Provisions:- 
As per section 158(1) of the Companies Act, 2013, Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director. 
Facts of the case: 
The company had filed an application for seeking status of Nidhi before the Ministry of Corporate Affairs in e-Form NDH-4. However, consequent upon filing the said form the Ministry of Corporate Affairs has observed that the Directors signing the financial statement have not mentioned their Director Identification Number in the documents attached with Form AOC-4 for the financial years 2014-15, 2016-17 and 2017-78 respectively. Thus, the provisions of Sec. 158(1) of the Companies Act, 2013 is violated.  
Penalty Imposed by Registrar of Companies on Company and Officers in Default 
Taking into consideration the facts of the appeal and submissions made by the authorized representative, the penalty imposed by Registrar of Companies is reduced.

Violation of section

Penalty imposed on company/ directors

Penalty imposed by ROC

Revised penalty imposed by RD

Sec. 158(1)  of the Companies Act, 2013

Company

1,50,000

60,000

Managing Director

1,50,000

60,000

Total

3,00,000

1,20,000

Reduction of penalty:  
The ground stated for the reduction of penalty that-  
1. Company has inadvertently omitted to mention the Director Identification Number of the signing directors in the financial statements  
2. The inadvertent omission to mention DIN of signing directors was neither deliberate nor intentional and it was unintentional clerical error went unnoticed and hence prayed for lenient view.
Exemption to Startup/ Small Company/OPC under section 446B: 
As per sec. 446B of the Companies Act, 2013, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.  
In this case, Section 446 will not appy as the company does not meet the criteria. 
Conclusion 
In conclusion, This case shows how the MCA (Ministry of Corporate Affairs) handles penalties. They understand that some rule violations happen by mistake. The big cut in penalties for Shri Narayani Nidhi Limited highlights the MCA’s aim to support business growth by reducing the financial impact of unintentional compliance issues. 
Download MCA adjudication order:

In this article, we will take you through the mandatory provisions under Section 158 of the Companies Act, 2013. As per section 158(1) of the Companies Act, 2013, Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.

Applicable Provisions:-

As per section 158(1) of the Companies Act, 2013, Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.

Facts of the case:

The company had filed an application for seeking status of Nidhi before the Ministry of Corporate Affairs in e-Form NDH-4. However, consequent upon filing the said form the Ministry of Corporate Affairs has observed that the Directors signing the financial statement have not mentioned their Director Identification Number in the documents attached with Form AOC-4 for the financial years 2014-15, 2016-17 and 2017-78 respectively. Thus, the provisions of Sec. 158(1) of the Companies Act, 2013 is violated.

Penalty Imposed by Registrar of Companies on Company and Officers in Default

Taking into consideration the facts of the appeal and submissions made by the authorized representative, the penalty imposed by Registrar of Companies is reduced.

Violation of section	Penalty imposed on company/ directors	Penalty imposed by ROC	Revised penalty imposed by RD
Sec. 158(1) of the Companies Act, 2013	Company	1,50,000	60,000
	Managing Director	1,50,000	60,000
	Total	3,00,000	1,20,000

Reduction of penalty:

The ground stated for the reduction of penalty that-

1. Company has inadvertently omitted to mention the Director Identification Number of the signing directors in the financial statements

2. The inadvertent omission to mention DIN of signing directors was neither deliberate nor intentional and it was unintentional clerical error went unnoticed and hence prayed for lenient view.

Exemption to Startup/ Small Company/OPC under section 446B:

As per sec. 446B of the Companies Act, 2013, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.

In this case, Section 446 will not appy as the company does not meet the criteria.

Conclusion

In conclusion, This case shows how the MCA (Ministry of Corporate Affairs) handles penalties. They understand that some rule violations happen by mistake. The big cut in penalties for Shri Narayani Nidhi Limited highlights the MCA’s aim to support business growth by reducing the financial impact of unintentional compliance issues.