What if any Authority Letter Remain Undelivered to the Registered Office of Company

What if any Authority Letter Remain Undelivered to the Registered Office of Company. In this article we will take you through the mandatory provisions under Section 12 of the companies Act, 2013 which mandates every company to  paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages
Applicable Provision:
The violation pertains to Section 12(3)(c) and (d), which mandates that every registered company must have its name and Corporate Identity Number (CIN) printed on business letters, billheads, and official publications. Additionally, non-compliance with this requirement attracts penalties under Section 12(8) of the Companies Act, 2013.
Facts of the Case:
ROC Order:
The Directorate issued a letter on 11/07/2019 to the company seeking information. However, the letter was returned undelivered with the postal remark "LEFT", raising the presumption that the registered office of the company was not duly maintained as required under Section 12 of the Companies Act, 2013. Consequently, the Directorate, via letter dated 19/09/2019, directed the Registrar of Companies, Pune, to initiate proceedings against the company and its directors under Section 12 read with Section 454(1) of the Companies Act, 2013. A show cause notice under Section 454(5) for violation of Section 12 was subsequently issued to the company and its directors/officers as per the addresses available on the MCA Portal.
The Registrar of Companies (ROC), Pune, upon review of the case, issued an order confirming that the Association was in violation of Section 12(3)(c) and (d) of the Companies Act, 2013. The order emphasized the importance of ensuring statutory disclosures in all official communications. The ROC directed the Association to immediately rectify the non-compliance and mandated a fine under Section 12(8). The order also highlighted that repeated violations could lead to stricter regulatory actions in the future.
Company filed an appeal stated that the company was maintaining its registered office at 5, Lokesh Apartments, Telco Centuryenka Road, Pimpri, Pune - 411018. However, the company had been inoperative since incorporation and had no employees or caretakers appointed due to financial constraints, which led to the premises remaining closed.
The earlier registered office of the company, located at 5, Lokesh Apartments, Telco Centuryenka Road, Pimpri, Pune - 411018, was registered in the name of Jugalkishore Mugatlal Shah, one of the company's directors. The said director intended to sell the premises for personal reasons, leading to a decision to shift the registered office to a new location.
Pimpri Chinchwad Iron and Steel Merchants Association (hereinafter referred to as "the Association") is a registered entity under the Companies Act, 2013. During an inspection by the authorities, it was found that the Association had failed to comply with the statutory requirements of displaying its registered name and CIN on its business correspondence, including letterheads and invoices.
Penalty Imposed
Upon examination, the Adjudicating Officer of the Registrar of Companies (ROC), Pune, levied a penalty on the Association and its officers in default.

Violation of Section

Penalty Imposed on the company

Penalty as per section 42 of the Act

Penalty imposed by RD

Section 12 of the companies Act 2013

Company

1 Lakh

10,000

Director

1,00,000 each on all directors

10,000 each on all directors

Reduction in Penalty
Upon representation and considering the submissions made by the Association, the Regional Director (Western Region), Mumbai, took a lenient view. Since the Association took immediate corrective measures and showed no mala fide intent, the penalty was reduced proportionally. The final penalty amount was adjusted to a lower sum to ensure compliance while balancing fairness in enforcement.
Conclusion
The case highlights the importance of strict compliance with statutory provisions under the Companies Act, 2013. Even seemingly minor procedural lapses, such as failure to display company details on business documents, can lead to regulatory action and financial penalties. However, timely rectification and a cooperative approach in responding to regulatory authorities can help in mitigating penalties. Companies and associations must ensure that their statutory disclosures are up to date to avoid such penalties in the future.
Download MCA Adjudication Order

In this article we will take you through the mandatory provisions under Section 12 of the companies Act, 2013 which mandates every company to paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages

Applicable Provision:

The violation pertains to Section 12(3)(c) and (d), which mandates that every registered company must have its name and Corporate Identity Number (CIN) printed on business letters, billheads, and official publications. Additionally, non-compliance with this requirement attracts penalties under Section 12(8) of the Companies Act, 2013.

Facts of the Case:

ROC Order:

The Directorate issued a letter on 11/07/2019 to the company seeking information. However, the letter was returned undelivered with the postal remark "LEFT", raising the presumption that the registered office of the company was not duly maintained as required under Section 12 of the Companies Act, 2013. Consequently, the Directorate, via letter dated 19/09/2019, directed the Registrar of Companies, Pune, to initiate proceedings against the company and its directors under Section 12 read with Section 454(1) of the Companies Act, 2013. A show cause notice under Section 454(5) for violation of Section 12 was subsequently issued to the company and its directors/officers as per the addresses available on the MCA Portal.

The Registrar of Companies (ROC), Pune, upon review of the case, issued an order confirming that the Association was in violation of Section 12(3)(c) and (d) of the Companies Act, 2013. The order emphasized the importance of ensuring statutory disclosures in all official communications. The ROC directed the Association to immediately rectify the non-compliance and mandated a fine under Section 12(8). The order also highlighted that repeated violations could lead to stricter regulatory actions in the future.

Company filed an appeal stated that the company was maintaining its registered office at 5, Lokesh Apartments, Telco Centuryenka Road, Pimpri, Pune - 411018. However, the company had been inoperative since incorporation and had no employees or caretakers appointed due to financial constraints, which led to the premises remaining closed.

The earlier registered office of the company, located at 5, Lokesh Apartments, Telco Centuryenka Road, Pimpri, Pune - 411018, was registered in the name of Jugalkishore Mugatlal Shah, one of the company's directors. The said director intended to sell the premises for personal reasons, leading to a decision to shift the registered office to a new location.

Pimpri Chinchwad Iron and Steel Merchants Association (hereinafter referred to as "the Association") is a registered entity under the Companies Act, 2013. During an inspection by the authorities, it was found that the Association had failed to comply with the statutory requirements of displaying its registered name and CIN on its business correspondence, including letterheads and invoices.

Penalty Imposed

Upon examination, the Adjudicating Officer of the Registrar of Companies (ROC), Pune, levied a penalty on the Association and its officers in default.

Violation of Section	Penalty Imposed on the company	Penalty as per section 42 of the Act	Penalty imposed by RD
Section 12 of the companies Act 2013	Company	1 Lakh	10,000
Section 12 of the companies Act 2013	Director	1,00,000 each on all directors	10,000 each on all directors

Reduction in Penalty

Upon representation and considering the submissions made by the Association, the Regional Director (Western Region), Mumbai, took a lenient view. Since the Association took immediate corrective measures and showed no mala fide intent, the penalty was reduced proportionally. The final penalty amount was adjusted to a lower sum to ensure compliance while balancing fairness in enforcement.

Conclusion

The case highlights the importance of strict compliance with statutory provisions under the Companies Act, 2013. Even seemingly minor procedural lapses, such as failure to display company details on business documents, can lead to regulatory action and financial penalties. However, timely rectification and a cooperative approach in responding to regulatory authorities can help in mitigating penalties. Companies and associations must ensure that their statutory disclosures are up to date to avoid such penalties in the future.