Registrar of Companies Adjudication Authority passed the order penalty for violation of Sec 12 of Companies Act, 2013

Facts and Issue of the case

A company incorporated and registered in Bihar had failed to paint or affix its name and the address of its registered office outside its office or place in which its business was being carried upon.Section 12 of the companies Act 2013 says A Company shall, on and from the fifteenth day of its incorporation within thirty days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. The Company fails to meet the requirement of Sec 12. The adjudicating officer issued a show cause notice after discovering the said lapse or failure during an inspection.

Observation of case

Provisions of Companies Act, 2013:

12(1) A company shall, on and from the thirty days 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.

12(4) 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 thirty days of the change, who shall record the same.

12(8) If any default is made in complying with the requirements of this section, 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.

On inspection, Adjudicating Officer noticed the said lapse/ default and issued show cause notice response from the company The company replied that a sign board was displayed at the entrance but due to rain and stormy weather the display board was damaged and the same was sent for renovation and it took 20 days. Thereafter it was affixed as required.

Conclusion

After hearing to the both parties its was held that the company was non-compliant of the section and following penalties were levied in violation of above provision