𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗜𝗺𝗽𝗼𝘀𝗲𝗱 𝗼𝗻 𝗨𝗻𝗶𝘁𝗲𝗱 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗜𝗻𝗱𝗶𝗮 𝗣𝘃𝘁 𝗟𝘁𝗱 𝗳𝗼𝗿 𝗗𝗲𝗹𝗮𝘆 𝗶𝗻 𝗔𝗽𝗽𝗼𝗶𝗻𝘁𝗶𝗻𝗴 𝗪𝗵𝗼𝗹𝗲-𝗧𝗶𝗺𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗦𝗲𝗰𝗿𝗲𝘁𝗮𝗿𝘆 𝗦𝘂𝗺𝗺𝗮𝗿𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗢𝗿𝗱𝗲𝗿 𝗣𝗮𝘀𝘀𝗲𝗱 𝗯𝘆 𝗥𝗢𝗖 𝗙𝗮𝘂𝗹𝘁 𝗮𝗻𝗱 𝗟𝗲𝗴𝗮𝗹 𝗕𝗮𝘀𝗶𝘀 The Registrar of Companies (ROC), NCT of Delhi & Haryana, issued a penalty order against United Technologies Corporation India Private Limited for violating Section 203(1) of the Companies Act, 2013, which mandates certain companies to appoint key managerial personnel, including a Whole-Time Company Secretary (CS). [img:wVI1PlsD2]

𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟮𝟬𝟯(𝟭): Requires companies with a paid-up share capital of ₹10 crore or more to appoint a Whole-Time Company Secretary (CS). 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟮𝟬𝟯(𝟱): Prescribes penalties of ₹5,00,000 for the company and ₹50,000 plus ₹1,000 per day of default for each officer in default, with a maximum penalty of ₹5,00,000 per officer.

𝗗𝗲𝘁𝗮𝗶𝗹𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗠𝗶𝘀𝘁𝗮𝗸𝗲 𝟭) 𝗖𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝗙𝗮𝗶𝗹𝘂𝗿𝗲: The company's paid-up capital exceeded ₹10 crore on July 28, 2022, triggering the requirement to appoint a Whole-Time CS. However, the company only appointed a CS on October 30, 2023, resulting in a default period of 458 days.

𝟮)𝗖𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗲: The company cited difficulties in finding a suitable candidate as the reason for the delay. Directors requested leniency, arguing that this was their first contravention under this provision. 𝟯) 𝗥𝗢𝗖'𝘀 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻: ROC rejected the leniency request, stating that the law provides a fixed penalty, leaving no room for discretion. Non-executive directors argued they were not officers in default, but ROC ruled that all board members during the default period are liable.

𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 𝗟𝗲𝘃𝗶𝗲𝗱 𝟭) 𝗨𝗻𝗶𝘁𝗲𝗱 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗜𝗻𝗱𝗶𝗮 𝗣𝘃𝘁 𝗟𝘁𝗱 (𝗖𝗼𝗺𝗽𝗮𝗻𝘆): ₹5,00,000. 𝟮) 𝗢𝗳𝗳𝗶𝗰𝗲𝗿𝘀 𝗶𝗻 𝗗𝗲𝗳𝗮𝘂𝗹𝘁: 𝗔𝘀𝗵𝗺𝗶𝘁𝗮 𝗦𝗲𝘁𝗵𝗶 (𝗪𝗵𝗼𝗹𝗲-𝗧𝗶𝗺𝗲 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿): ₹5,00,000. 𝗥𝗮𝗷𝗶𝘃 𝗧𝗵𝗮𝗽𝗮𝗿 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿): ₹5,00,000. 𝗣𝗮𝗿𝘂𝘁𝗵𝗶𝗽𝗽𝗮𝗿𝗮 𝗥𝗮𝘃𝗶𝗻𝗱𝗿𝗮𝗻 𝗥𝗲𝗺𝗮 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿): ₹4,45,000. 𝗞𝘂𝗿𝘁 𝗔𝗻𝗱𝗿𝗲𝘄 𝗣𝗲𝗿𝗰𝘆 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿): ₹5,00,000. 𝗦𝘂𝗿𝗶𝗻𝗱𝗲𝗿 𝗦𝗶𝗻𝗴𝗵 𝗞𝗮𝗶𝗻𝘁𝗵 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿): ₹5,00,000. 𝗦𝗮𝗻𝗱𝗲𝗲𝗽 𝗦𝗵𝗮𝗿𝗺𝗮 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿, 𝘂𝗻𝘁𝗶𝗹 𝗔𝘂𝗴 𝟮𝟱, 𝟮𝟬𝟮𝟯): ₹4,43,000. 𝗔𝗺𝗶𝘁 𝗣𝗮𝘁𝗵𝗮𝗸 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿, 𝘂𝗻𝘁𝗶𝗹 𝗡𝗼𝘃 𝟭𝟰, 𝟮𝟬𝟮𝟮): ₹1,59,000. 𝗣𝗮𝗻𝗸𝗮𝗷 𝗔𝗻𝗮𝗻𝗱 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿, 𝘂𝗻𝘁𝗶𝗹 𝗝𝘂𝗹𝘆 𝟱, 𝟮𝟬𝟮𝟯): ₹3,92,000. 𝗗𝗶𝘃𝘆𝗲𝘀𝗵 𝗝𝗮𝗺𝗻𝗮𝗱𝗮𝘀 𝗗𝗮𝗹𝗮𝗹 (𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿, 𝘂𝗻𝘁𝗶𝗹 𝗢𝗰𝘁 𝟮𝟵, 𝟮𝟬𝟮𝟯): ₹2,50,000. 𝗧𝗼𝘁𝗮𝗹 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗣𝗮𝘆𝗮𝗯𝗹𝗲: ₹41,89,000.