Sitaram Maharaj Sakhar Karkhana (Khardi) Limited has been penalised for violating Section 12(1) of the Companies Act, 2013.
In a recent adjudication ruling, the Registrar of Companies, Maharashtra, Pune, penalised Sitaram Maharaj Sakhar Karkhana (Khardi) Limited for violating Section 12(1) of the Companies Act of 2013. The complaint focuses on the company’s failure to display its name and address, a board at its facilities, and the relevant contact information as required by law.
Background: Sitaram Maharaj Sakhar Karkhana (Khardi) Limited, a registered company under the Companies Act of 2013, was subjected to an inspection by regulatory authorities, which revealed significant violations regarding the company’s registered office details and communication practices.
The adjudicating officer, Mukesh Kumar Soni, recommended that the company and its officers pay a total penalty of Rs. 1,54,000/- for the default period. Nonpayment may result in additional consequences, such as fines and jail. In the event of a dispute, the business and its executives may file an appeal within sixty days of receiving the order, using the procedures described in Sections 454(5) and 454(6) of the Companies Act of 2013.
This ruling, dated December 20, 2023, serves as an important reminder to businesses to follow legislative deadlines to avoid penalties and legal ramifications. The extensive research sheds light on the adjudication procedure and the specific concerns in this instance.
Absence of Board and Exhibit at Premises: The inspection revealed that the company did not exhibit any board promoting its office on its premises. Furthermore, it did not display its name and location on the outside of its premises, infringing Section 12(1) of the Companies Act of 2013.
Non-disclosure of Contact Information: The company was found in violation of Section 12(3)(c) because it did not include its phone number, fax number, email address, and website (if any) on its letterhead, as required by law.
Admission of Non-existence of Website and Contact Numbers: During the inspection, the company admitted to not having a website, fax number, or phone owing to mobile use. This disclosure sparked questions about the company’s communication and collaboration with stakeholders, particularly given its fundraising operations.
Legal Implications: Under Section 12(8) of the Companies Act of 2013, a company and its officials in default are subject to a penalty of one thousand rupees for each day the default continues, not exceeding one lakh rupees.
Sitaram Maharaj Sakhar Karkhana (Khardi) Limited was issued an adjudication notice on May 26, 2023, under Section 454(4) read with Section 12, stating the observed infractions.
CONSEQUENCES OF NON-PAYMENT
Non-payment repercussions: According to Section 454(8)(ii) of the Companies Act of 2013, failing to pay the penalty within the statutory time period may result in severe repercussions.
CONCLUSION
The case of Sitaram Maharaj Sakhar Karkhana (Khardi) Limited highlights the importance of adhering to legislative requirements. Companies are encouraged to follow the provisions of the Companies Act of 2013, which promotes transparency and responsibility among stakeholders.
OFFICE OF THE REGISTRAR OF COMPANIES
MAHARASHTRA, PUNE
MINISTRY OF CORPORATE
AFFAIRS
GOVERNMENT OF INDIA
Order No. RoCP/ADJ/order/12/23-
24/SMSKKL/MV/2323/02328
Dated: Date: 21 DEC 2023
ADJUDICATION ORDER
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Adjudication Order of penalties in the matter of SITARAM MAHARAJ SAKHAR KARKIIANA
(KHARDI) LIMITED CIN U15424PN1999PLC013656 under Section 454 (3) r/w 12 of the
Companies Act, 2013