ROC-Hyderabad Order u/s 12(8) for Vena Energy Aura Pvt Ltd: Penalty for Non-Maintenance

ROC-Hyderabad Order u/s 12(8) for Vena Energy Aura Pvt Ltd: Penalty for Non-Maintenance. Through this article, We will take you through the mandatory provisions for the company under Section 12(1) & (4) for maintaining the Registered Office of the company throughout the existence and in case of failure at any stage, MCA can penalize the company and officer in default under section 12(8) of the companies Act 2013, Hence, please take care that proper Board also maintained at the Registered office including the delivery of any communication form the government officials.
Applicable Provisions: -
Section12(3)(c) of the Companies Act, 2013 states that a Company shall, get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications.
Section 12(1) of the Companies Act, 2013 states that a company shall, on and from the fifteenth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notice as may be addressed to it.
Section 12(4) of the Companies Act, 2013 states that the notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the registrar within fifteen days of the change, who shall record the same.
Facts of the case: -
During enquiry by the jurisdictional Registrar of Companies on a Company on the order of Ministry of Corporate Affairs, it was observed that the company is not maintaining its registered office because letter of MCA undelivered, Thus, it appears that the company has failed to maintain its registered office, resulting into a violation of section 12(1) r/w. section 12(4) of Act which attracted penal provisions of section 12(8) of the Companies Act, 2013.
Further, Adjudication notices were issued to the Company and its officers in default for violating the provisions of Section 12(1) r/w. section 12(4) of the Companies Act, 2013. But the Adjudication notices were received back undelivered with a postal remark “LEFT”. After that the jurisdictional office of the Registrar of Companies issued a written notice to the Company and its officers in default under section 454(4) of the Companies Act, 2013.
But there was no response within the specified time, nor the Directors or the representatives of the Company appeared on the stipulated date. Also, the written notice issued by the jurisdictional office of the Registrar of Companies to the Company had returned undelivered with a postal remark “LEFT”.
Penalty Provision
Section 12(8) of the Companies Act, 2013 states that, if any default is made in complying with the requirements section 12, the Company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.
Penalty Imposed by Registrar of Companies on Company and Officers in Default
The Company and Officers in Default are directed to pay the penalty amount and the penalty so imposed on the Officers in Default shall be paid from their personal income.
The penalty imposed shall be paid through the Ministry of Corporate affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019.
As per Section 454(8)(i) and 454(8)(ii) of the Companies Act, 2013 states that in case of non-payment of penalty amount, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees and Officers in Default shall be punishable with imprisonment which may extend to six months or fine shall not be less than five thousand rupees but which may extend to one lakh rupees or both.
Penalty Imposed:
Company
Officer in Default
Startup/ Small Company/OPC Advantage under section 446B: 
Not applicable under this order as company ------------------------------------
Conclusion
In conclusion, It is mandatory for companies to comply with the mandatory provisions under Section 12 of the Companies Act, 2013, regarding the maintenance of a registered office. Failure to maintain this registered office and adhere to Section 12(1) and Section 12(4) can lead to significant penalties under Section 12(8), as highlighted in this MCA Adjudication case.
The penalties imposed by the Registrar of Companies can reach up to one lakh rupees for both the company and its officers. Therefore, companies must ensure that their registered office is capable of receiving official communications at all times, and that the proper signage and contact information are displayed as required by law. By doing so, businesses can avoid costly legal repercussions and maintain compliance with MCA regulations.
Download MCA adjudication order:

Through this article, We will take you through the mandatory provisions for the company under Section 12(1) & (4) for maintaining the Registered Office of the company throughout the existence and in case of failure at any stage, MCA can penalize the company and officer in default under section 12(8) of the companies Act 2013, Hence, please take care that proper Board also maintained at the Registered office including the delivery of any communication form the government officials.

Applicable Provisions: -

Section12(3)(c) of the Companies Act, 2013 states that a Company shall, get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications.

Section 12(1) of the Companies Act, 2013 states that a company shall, on and from the fifteenth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notice as may be addressed to it.

Section 12(4) of the Companies Act, 2013 states that the notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the registrar within fifteen days of the change, who shall record the same.

Facts of the case: -

During enquiry by the jurisdictional Registrar of Companies on a Company on the order of Ministry of Corporate Affairs, it was observed that the company is not maintaining its registered office because letter of MCA undelivered, Thus, it appears that the company has failed to maintain its registered office, resulting into a violation of section 12(1) r/w. section 12(4) of Act which attracted penal provisions of section 12(8) of the Companies Act, 2013.

Further, Adjudication notices were issued to the Company and its officers in default for violating the provisions of Section 12(1) r/w. section 12(4) of the Companies Act, 2013. But the Adjudication notices were received back undelivered with a postal remark “LEFT”. After that the jurisdictional office of the Registrar of Companies issued a written notice to the Company and its officers in default under section 454(4) of the Companies Act, 2013.

But there was no response within the specified time, nor the Directors or the representatives of the Company appeared on the stipulated date. Also, the written notice issued by the jurisdictional office of the Registrar of Companies to the Company had returned undelivered with a postal remark “LEFT”.

Penalty Provision

Section 12(8) of the Companies Act, 2013 states that, if any default is made in complying with the requirements section 12, the Company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.

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

The Company and Officers in Default are directed to pay the penalty amount and the penalty so imposed on the Officers in Default shall be paid from their personal income.

The penalty imposed shall be paid through the Ministry of Corporate affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019.

As per Section 454(8)(i) and 454(8)(ii) of the Companies Act, 2013 states that in case of non-payment of penalty amount, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees and Officers in Default shall be punishable with imprisonment which may extend to six months or fine shall not be less than five thousand rupees but which may extend to one lakh rupees or both.

Penalty Imposed:

Company

Officer in Default

Startup/ Small Company/OPC Advantage under section 446B:

Not applicable under this order as company ------------------------------------

Conclusion

In conclusion, It is mandatory for companies to comply with the mandatory provisions under Section 12 of the Companies Act, 2013, regarding the maintenance of a registered office. Failure to maintain this registered office and adhere to Section 12(1) and Section 12(4) can lead to significant penalties under Section 12(8), as highlighted in this MCA Adjudication case.

The penalties imposed by the Registrar of Companies can reach up to one lakh rupees for both the company and its officers. Therefore, companies must ensure that their registered office is capable of receiving official communications at all times, and that the proper signage and contact information are displayed as required by law. By doing so, businesses can avoid costly legal repercussions and maintain compliance with MCA regulations.