GOVERNMEN'T OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF THE REGISTRAR OF COMPANIES, TAMIL NADU
SHASTRI BHAVAN,II FLOOR,26, HADDOWS ROAD, CHENNAI-6.
F.NO.ROC/CHN/THIYAGARAJAN /ADJ Order/S.l 55/2023
Date: 10 July 2023
Order of adjudication of penalty under section 454 of companies act. 20133 read with rule 3 of the companies (adjudication of penalties) rules 2014 for violation of provisions of section 155 of the companies act.2oi3 by shri. Thiyagarajan Parthasarathy
Whereas Shri. Thiyagarajan Parthasarathy S/o Parthasarathy, Aged 53 having DIN 09018479 and residing at No. 24, Old No. 33, Mettu Street, Periyakuppam, Thiruvallur - 602 001
Whereas per the section 155 of the Companies Act,2013 which read as under: "No individual, who has already been allotted a Director Identification Number under Section I 5 4, shall apply for, Obtain or process another Director identification Number"
Whereas upon processing of DIR-5 by the Office of the Regional Director (Northern Region) with respect to surrender of your second DIN, it was observed that, the applicant has applied for and obtained two DINs on MCA portal, namely Din 03191514 dated 23.08.2010 (old DN) and DIN 09018479 dated 04.01.2021 (Second DIN). Further, applicant himself has admitted and the same has been verified in e-records that the DIN being surrendered has been /is still associated with a company namely SPS Hyundai Private Limited and new DIN was applied, while forming the new company SPS Motors Private Limited. DIN surrender cannot be allowed pursuant to Rule I I (f; of the Companies (Appointment & Qualifications of Directors) Rules, 2014. Furthermore, applicant's clarification with respect to duplication does not seem satisfactory and it appears that the 2'd DIN was obtained in violation of Section 155 of the Companies Act, 2013
Whereas the Office of the Regional Director (Northern Region) vide letter dated 05.09.2022 has requested this office to take necessary action for violation of Section 155 of the Companies Act, 2013 and this office have issued a Show Cause Notice to the director Shri. Thiyagarajan Parthasarathy on 19.10.2022 for Violation of Provisions of Section 155 of the Companies Act, 2013
Whereas the undersigned has reasonable cause to believe that the aforesaid Provisions of the Act have not been complied with. and accordingly this office had issued Adjudication Hearing Notice to the company vide letter dated 15.06.2023 to Shri Thiyagarajan Parthasarathy.
Whereas in pursuance of the adjudication hearing notice issued vide dated 15.06.2023 to Shri Thiyagarajan Parthasarathy, SHRI FRANCIS Practising Company Secretary representative of the Thiyagarajan Parthasarathy has appeared before the undersigned on 30.06.2023 and admitted the violation on behalf of Shri Thiyagarajan Parthasarathy.
In view of the above, upon examination and hearing, the Violation of Section 155 of the Companies Act, 2013 for which penalty shall be imposed as per Section 159 of the Companies Act,20l3.
Whereas according to Section 159 which reads as under:-
"If any individual or director of a company makes any default in complying with any of the provisions of section 152, section i,55 and section I 56, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each days after the first during which such default continues.
Therefore in view of the above said violation of Section 155 of the Companies Act,20l3, the undersigned in exercise of the powers vested to him under Section a54(l) & (3) of the Companies Act, 2013 hereby impose a penalty
Shri. Thiyagarajan Parthasarathy – Director
Amount of Penalty for 1st default: Rs.50,000/-
Additional Penalty for Continuing Offence: Delay days 907 (500*907): Rs. 4,53,500/-
Total amount of Penalty imposed: Rs.5,03,500/-
Total Rs. 5,03,500 as penalty amount for Violation of 155 of the Companies Act.2013
Whereas sub-section(5)of Section454 of the Companies Act,2013 provides that any person aggrieved by an order made by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter and further sub-section (6) provides that every appeal under sub-section (5) shall be filed with in 60 days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed.
Please note that as per Section 454 (8) which read as under
(i) of the Companies Act, 201 3, "where the company does not pay the penalty imposed by the adjudicating officer or the Regional Director within a period of 90 days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than 25,000 rupees but which may extend to 5,00,000 rupees.
(ii) where an officer of a company who is in default does not pay the penalty within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than 25,000 rupees but which may extend to 1,00,000 rupees, or with both"