ADJ – DG - 03
ADJUDICATION PENALTY FOR NON-COMPLIANCE OF DIN
Date: 22.07.2023
SHORT
SUMMARY:
According to Section 155 (Prohibition to Obtain
More than One Director Identification Number): No individual, who has already
been allotted a Director Identification Number under section 154, shall apply
for, obtain, or possess another Director Identification Number.
Every Director must comply with the above
provision in order to preserve good governance. DIN Holders having their DIN
associated with the MCA (Ministry of Corporate Affairs) do not follow this
clause of the Company Act 2013.
Ministry of Corporate Affairs appointed
undersigned as Adjudicating Officer in exercise of the powers conferred by
Section 454 of the Act, 2013
According to MCA ROC Chennai data, a Director
has received an adjudication order for failing to Comply with provisions of DIN.
One of those orders will be discussed
in this editorial:
“Adjudication Order in the Matter of
Shri Thiyagarajan Parthasarathy”
1. FACTS
OF THE CASE:
1) On Processing of DIR-5 by the Regional
Director w.r.t. surrender of second DIN 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).
2) 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.
3) Whereas the Regional Director vide
letter dated 05.09.2022 has requested ROC to take necessary action for
violation of Section 155 of Companies act 2013.
4) ROC issued Show Cause Notice on
19.10.2022 for violation of the provisions.
5) Whereas the adjudicating officer has
reasonable cause to believe that the provisions of the Act have not been
complied with. Therefore Adjudication Hearing Notice issued to the company vide
letter dated 15.06.2023 to Shri Thiyagarajan Parthasarathy.
6) Whereas Company Secretary has appeared
and admitted the violation of Section 155 of Companies act 2013.
2.
ORDER:
As
per Section 159, If any individual or director of a company makes any default
in complying with any of the provisions of section 152, section 155 and section
156, 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
day after the first during which such default continues
ROC Carefully Perused the Reply Made by
the Company and found that Provisions of Section 155 have been contravened.
The Adjudicating Officer do hereby
impose a penalty under Section 159 on the Directors as per Table below for
violation of Section 155 of the Companies Act, 2013.
|
Company/ Officers to whom Penalty imposed
|
Total Period of Default
|
Penalty for defaults (Rs.) as per
section 159 of the company act 2013
|
Additional penalty for continuing
default
|
Penalty Imposed (Rs.
|
|
On Shri. Thiyagarajan Parthasarathy
|
907 Days
|
Rs. 50,0000+
Rs. 500 each day for continuing default
|
500*907=4,53,500
|
5,03,500
|
|
|
|
|
Total
|
5,03,500
|
1. CONCLUSION:-
As per Companies act, DIN will be allocated to every director of
the Company and as per the provisions only one DIN is allowed.
Director are
required to comply with the DIN related provisions to avoid future penalties.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company
Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).
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