Companies (Adjudication of Penalties) Amendment Rules 2019. Reply to notice shall be filed in electronic mode only but oral submissions allowed
Government of India
Ministry of Corporate Affairs
New Delhi. the 19 February, 2019
GSR___(E).- In exercise of the powers conferred by section 454 read with section 469 of the Companies Act, 2013, the Central Government hereby makes the following rules, to amend the Companies (Adjudication of Penalties) Rules. 2014, namely:-
1. Short Title and Commencement.- (1) These rules may be called the Companies (Adjudication of Penalties) Amendment Rules. 2019.
(2) They shall cone into force on the date of their. publication in the Official Gazette.
2. In the Companies (Adjudication of Penalties) Rules 2014, for rule 3, the following rule shall be substituted. namely:-
“3. Adjudication of Penalties. – (1) The Central Government may appoint any of its officials not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of the Act.
(2) Before adjudging penalty, the adjudicating officer shall issue a written notice in the specified manner to the company, the officer who is in default or any other person, as the case may be, to show cause, within such period as may be specified in the notice (not being less than fifteen days and more than thirty days from the date of service thereon). why the penalty should not be imposed on it or him.
(3) Every notice issued under sub-rule (2), shall clearly indicate the nature of non-compliance or default under the Act alleged to have been committed or made by such company officer in default, or any, other person, as the case may be and also draw attention to the relevant penal provisions of the Act and the maximum penalty which can be imposed on the company, and each of the officers in default or the other person .
(4) The reply to such notice shall be filed in electronic mode only within the period as specified in the notice:
Provided that the adjudicating officer may, for reasons to be recorded in writing, extend the period referred to above by a further period not exceeding fifteen days, if the company or officer in default or any person as the case may be, satisfies the adjudicating officer that it or he has sufficient cause for nor responding to the notice within the stipulated period or the adjudicating officer has reason to believe that the company or the officer or the person has received a shorter notice and did not have reasonable time to give reply.
(5) If, after considering the reply submitted by such company, its officer. or any other person, as the case may be, the adjudicating officer is of the opinion that physical appearance is required, he shall issue a notice, within a period of ten working days from the date of receipt of reply fixing a date for the appearance of such company through its authorised representative. or officer of such company, or any other person. whether personally or through his authorised representative:
Provided that if any person to whom a notice is issued under sub-rule (2), desires to make an oral representation, whether personally or through his authorised representative and has indicated the same while submitting his reply in electronic mode, the adjudicating officer shall allow such person to make such representation after fixing a dale of appearance.
(6) on the date fixed for hearing and after giving a reasonable opportunity of being heard to the person concerned, the adjudicating officer may, subject to reasons to be recorded in writing, pass any order in writing as he thinks fit including an order for adjournment:
Provided that after hearing, adjudicating officer may require the concerned person to submit his reply in writing on certain other issues related to the notice under sub rule (2), relevant for determination of the default.
(7) The adjudicating officer shall pass an order.-
[File No. 1/25/2013/CL-V]
Joint Secretary to the Government of India