[Opinion] ROC Penalizes Co. & Director for Failure to Mention DIN While Communicating to the Regulator

Prof R Balakrishnan – [2024] 163 taxmann.com 366 (Article)

1. Background of this case

This is the case where, the director of a company named M/s Wind World (India) Limited did not mention the director identification number (DIN) while sending a reply letter dated 9th August 2022 to the office of the Registrar of Companies, pursuant to an enquiry conducted by the inspecting officials under the provisions of sub-section (4) of section 206 of the Companies Act 2013. As per the framework of the Companies Act 2013, pursuant to section 158 of the Companies Act 2013, every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall have to mandatorily mention the director identification number (DIN) in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director. Since the reply submitted by the director of M/s Wind World (India) Limited, the Adjudication Officer of Goa, initiated the proceedings against the company and following the due process of law passed the adjudication order and penalized the company and director to a tune of rupees one lakh. Let us go through this case in order to understand the intricacies, requirement of the law and the consequences of default on this matter.

2. Relevant provision of the Companies Act relating to this case

As per the sub-section (1) of section 158 of the Companies Act, 2013 in Chapter XI, every person or company, while furnishing any return, information or particulars as are required to be furnished under the Companies Act2013, shall have to mention the Director Identification Number (DIN) in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.

3. Penal provisions for default committed if any

Section 172 of the Companies Act 2013, spells out the punishment for any contravention committed in this chapter i.e. chapter XI. As per the provisions of section 172, if a company contravenes any of the provisions of this Chapter and for which no specific punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of rupees

4. Consequences of default/violation

To understand the consequences of any default/non-compliance while complying with the provisions of section 158 of the Companies Act 2013 relating to indicating the details of director identification number while communicating to the regulators by a director of a company, let us go through the decided case law by the Registrar of Companies of Goa, Daman & Diu on this matter on 15th April 2024 relating to M/s. Wind World (India) Limited.

5. The relevant case law on this matter

We shall go through the adjudication order bearing no. ROCGDD/Ao/Sec-158/2024/04 passed by the Registrar of Companies, Goa, Damn & Diu on 15th April 2024 under section 454 of the Companies Act 2013 read with Companies (Adjudication of Penalties) Rules 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules 2019 in respect of M/s. Wind World (India) Limited.

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