CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit
An adjudicating officer imposed a penalty on Rudra Metals Ltd and directed it to rectify a default. The company received the copy of the order on 1 March and did not comply or appeal. Under the Companies Act, 2013, which is correct?
If the company fails to comply with the adjudicating officer's order within ninety days from receipt of the copy, it is punishable with a fine of not less than twenty-five thousand rupees, extending to five lakh rupees. Imprisonment is provided only for officers or other persons in default, and sixty days is just the appeal period.
- AIf the company fails to comply within ninety days of receipt, it is punishable with fine of at least twenty-five thousand rupees extending to five lakh rupeesCorrect
- BIf the company fails to comply within sixty days, it is punishable with imprisonment
- CIf the company fails to comply within ninety days, the fine is fixed at one lakh rupees
- DIf the company fails to comply within thirty days, it is punishable with fine up to five lakh rupees
Explanation
Section 454(8)(i) applies where the company fails to comply with the order within ninety days of receiving the copy. The fine is not less than twenty-five thousand rupees but may extend to five lakh rupees. Sixty days is the appeal period, not the compliance period, and imprisonment applies only to officers or other persons in default.
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