ROC Chhattisgarh Levies Rs.3.50 Lakh Penalty: Non-Compliance of Sec. 66

ROC Chhattisgarh Levies Rs.3.50 Lakh Penalty: Non-Compliance of Sec. 66. This article summarizes the adjudication proceedings initiated by the Registrar of Companies (ROC), Chhattisgarh, under Section 454 of the Companies Act, 2013, against Oriental Matchem Ltd. for violation of Section 450 of the Act read with Rule 9A(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.
The proceedings arose due to the company’s failure to file Form PAS-6 (Reconciliation of Share Capital Audit Report) for the half-year ended 31 March 2025, within the stipulated period.
Applicable Provisions
Under Rule 9A(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014, every unlisted public company must submit Form PAS-6 to the Registrar within sixty days from the conclusion of each half-year, certified by a practising company secretary or chartered accountant.
As per Section 450 of the Companies Act, 2013:
If no specific penalty is provided elsewhere in the Act, a company and every officer in default shall be liable to a penalty of Rs.10,000, and in case of a continuing contravention, with a further penalty of Rs.1,000 per day, subject to a maximum of Rs.2,00,000 for the company and Rs.50,000 for each officer in default.
Facts of the Case
The company, Oriental Matchem Ltd. (CIN: U27109CT1990PLC009774), having its registered office at Bhilai, Chhattisgarh, filed an application for reduction of share capital under Section 66. During scrutiny, the ROC observed that the company had not filed Form PAS-6 for the half-year ended 31 March 2025.
Despite being required to submit this form periodically, the company failed to do so within time. No request for an e-hearing was made by the company or its officers.
The company later filed the pending form belatedly on 30 July 2025.
Company’s Submissions
The company, represented by its directors Ms. Poonam Jain, Ms. Geetika Jain, and Ms. Sagarika Sawhney, submitted that:

The non-filing was inadvertent, not wilful.

There was no change in shareholding, and the company had a simple ownership structure.

Compliance costs for repeated NIL filings were financially burdensome for a small company.

However, the ROC held that such arguments were not tenable, as compliance with Rule 9A(8) is mandatory irrespective of the company’s size or changes in shareholding.
Penalty Imposed by ROC Chhattisgarh

Violation

Name of Company/Director

Rectification of Default

Penalty (Rs.)

Maximum Limit (Rs.)

Section 450 – Non-filing of PAS-6

Oriental Matchem Ltd.

Required

70,000

2,00,000

Section 450 – Same

Poonam Jain (DIN: 00207373)

Required

50,000

Section 450 – Same

Geetika Jain (DIN: 00207695)

Required

50,000

Section 450 – Same

Sagarika Sawhney (DIN: 02321191)

Required

50,000

Total Penalty: Rs.2,20,000
The company and its directors were directed to pay the penalty within 90 days through the MCA e-Adjudication portal.
Right to Appeal
The company or its officers may file an appeal to the Regional Director, Ahmedabad, within 60 days from the date of receipt of this order in Form ADJ, along with a certified copy of the order.
Conclusion
The ROC Chhattisgarh, exercising powers under Section 454, imposed monetary penalties on Oriental Matchem Ltd. and its directors for failure to comply with Rule 9A(8).
This case reiterates that statutory filings such as PAS-6 must be submitted within due dates, even in cases of no shareholding change or NIL reporting. Financial or administrative inconvenience cannot be used as an excuse for non-compliance.
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This article summarizes the adjudication proceedings initiated by the Registrar of Companies (ROC), Chhattisgarh, under Section 454 of the Companies Act, 2013, against Oriental Matchem Ltd. for violation of Section 450 of the Act read with Rule 9A(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

The proceedings arose due to the company’s failure to file Form PAS-6 (Reconciliation of Share Capital Audit Report) for the half-year ended 31 March 2025, within the stipulated period.

Applicable Provisions

Under Rule 9A(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014, every unlisted public company must submit Form PAS-6 to the Registrar within sixty days from the conclusion of each half-year, certified by a practising company secretary or chartered accountant.

As per Section 450 of the Companies Act, 2013:

If no specific penalty is provided elsewhere in the Act, a company and every officer in default shall be liable to a penalty of Rs.10,000, and in case of a continuing contravention, with a further penalty of Rs.1,000 per day, subject to a maximum of Rs.2,00,000 for the company and Rs.50,000 for each officer in default.

Facts of the Case

The company, Oriental Matchem Ltd. (CIN: U27109CT1990PLC009774), having its registered office at Bhilai, Chhattisgarh, filed an application for reduction of share capital under Section 66. During scrutiny, the ROC observed that the company had not filed Form PAS-6 for the half-year ended 31 March 2025.

Despite being required to submit this form periodically, the company failed to do so within time. No request for an e-hearing was made by the company or its officers.

The company later filed the pending form belatedly on 30 July 2025.

Company’s Submissions

The company, represented by its directors Ms. Poonam Jain, Ms. Geetika Jain, and Ms. Sagarika Sawhney, submitted that:

The non-filing was inadvertent, not wilful.
There was no change in shareholding, and the company had a simple ownership structure.
Compliance costs for repeated NIL filings were financially burdensome for a small company.

However, the ROC held that such arguments were not tenable, as compliance with Rule 9A(8) is mandatory irrespective of the company’s size or changes in shareholding.

Penalty Imposed by ROC Chhattisgarh

Violation	Name of Company/Director	Rectification of Default	Penalty (Rs.)	Maximum Limit (Rs.)
Section 450 – Non-filing of PAS-6	Oriental Matchem Ltd.	Required	70,000	2,00,000
Section 450 – Same	Poonam Jain (DIN: 00207373)	Required	50,000	50,000
Section 450 – Same	Geetika Jain (DIN: 00207695)	Required	50,000	50,000
Section 450 – Same	Sagarika Sawhney (DIN: 02321191)	Required	50,000	50,000

Total Penalty: Rs.2,20,000

The company and its directors were directed to pay the penalty within 90 days through the MCA e-Adjudication portal.

Right to Appeal

The company or its officers may file an appeal to the Regional Director, Ahmedabad, within 60 days from the date of receipt of this order in Form ADJ, along with a certified copy of the order.

Conclusion

The ROC Chhattisgarh, exercising powers under Section 454, imposed monetary penalties on Oriental Matchem Ltd. and its directors for failure to comply with Rule 9A(8).

This case reiterates that statutory filings such as PAS-6 must be submitted within due dates, even in cases of no shareholding change or NIL reporting. Financial or administrative inconvenience cannot be used as an excuse for non-compliance.