"Behind the Scenes: Vimal Anjani Fab Pvt Ltd Case Unveiled!"p

Summary of Vimal Anjani Fab Private Limited Case

Background:
-Incident:The Ministry of Corporate Affairs (MCA) sent a letter dated 7th March 2023 to the registered office of Vimal Anjani Fab Private Limited via registered post. This letter was returned with the postal remark "no such person at the address," indicating a violation of Section 12(1) of the Companies Act, 2013.
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Section 12(1) of the Companies Act, 2013:** This section mandates that every company must have a registered office capable of receiving and acknowledging all communications and notices.

Proceedings:

- SCN Issuance:Due to the violation, a Show Cause Notice (SCN) was issued on 31st March 2023 by the Adjudicating Officer, Registrar of Companies, Gwalior, Madhya Pradesh. This SCN remained undelivered.
- Notice of Inquiry: A subsequent notice of inquiry, dated 19th April 2023, was issued to the company and its directors, requesting a physical hearing on 3rd May 2023.

- Hearing: CS Devendra Singh appeared for the hearing, explaining that the first letter was not received due to the Holi holiday at the company, and the second letter was not received due to a family medical emergency at one of the directors' homes, which led to staff leave. This reply was submitted in writing on 10th April 2023.

Adjudication:
- Findings: The Adjudicating Officer at the Registrar of Companies, Gwalior, determined that a default of 19 days occurred, starting from the date of the receipt of the first postal remark up to the date the SCN was issued.

- Penalty under Section 12(8) of the Companies Act, 2013:
- Section 12(8): This section stipulates that if a company or its officers fail to comply with the requirements of Section 12, they may be liable to a penalty.

- Penalty Imposed: A fine of ₹19,000 was imposed on the company and each of its two directors.

Consequences of Non-Compliance:
- Section 454(8)(i) of the Companies Act, 2013: Requires the company or the officer in default to comply with the adjudicating officer's order within ninety days of receiving the order.
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Section 454(8)(ii) of the Companies Act, 2013: If the penalty is not discharged within the specified ninety days, the company may face a fine ranging from ₹25,000 to ₹5,00,000, and each officer in default may face a fine ranging from ₹25,000 to ₹1,00,000 or Imprisonment upto 6 months or both

Conclusion:
The case highlights the importance of maintaining an accessible registered office and the consequences of failing to comply with statutory requirements under the Companies Act, 2013. The penalties imposed serve as a reminder of the regulatory expectations for corporate governance and compliance.