Adjudication order for violation of section 203 of Companies Act, 2013 in the matter of M/S. Shivom Minerals Limited

Application No. RDIER/ 45415! -' 12024 lAppeal BEFORE THE REGIONAL DIRECTOR, EASTERN REGION LKATA. IN THE MATTER OF THE COMPANIES ACT,2013 .AND- IN THE MATTER OF

1. Shivom Minerals Limited P-25, Civil Township, Rourkela, Orissa-769004. (CIN: U269 4 1 OR 1 999PLC005785) -AND IN THE MATTER OF Application under section 454(5) of The Companies Act, 2013 for preferring an appeal against the penalty order dated 05.07.2024 of the Registrar of Companies, Cuttack, passed for violating the Provisions of Section 203 of the Companies Act, 2013. -AND-

2. Shivom Minerals Limited P-25, Civil Township, Rourkela, Orissa-769004. (CIN: U2694 1 OR 1 999PLC005785) fsres llPage

3. Vikash Gupta (DIN- O1326705) AT-1/ 15, Civil Township, Rourkela, 769004, Orissa.

4. Pankhuri Agarwal (DIN/PAN- BJZPA0620D) (CFO) AT-G9, First Floor, Civil Township, Infront of Sanjivini Park, Rourkela,769004, Orissa.

5. Ravikant Sharma (DIN/Pan- CLZP1908F) At-SSS/3, Civil Township, Dist. Sundergarh, Rourkela,T 69004, Orissa APPELLANTS Date of Hearing : L7.O7.2025 Present : Mr. Nitin Daga, l,earned Practicing Chartered Accountant and Authorized Representative on behalf of the Appellant. ORDER

6. The present appeal has been preferred under section 454(5) of the Companies Act,2013 read with the provisions of the Companies (Adjudication of Penalties) Rules, 2014 vide Form ADJ bearing SRN no. F98066947 dated 03.09.2024 against the penalty order dated O5.O7.2024 for violation of Section 203 of the Companies Act, 2013 passed by the Adjudicating Authority i.e. Registrar of Companies, 2lPage

F98066947 dated 03.09.2024 against the penalty order dated O5.O7.2024 for violation of Section 203 of the Companies Act, 2013 passed by the Adjudicating Authority i.e. Registrar of Companies, 2lPage

,t Cuttack, Odisha, dated O5.O7.2024 communicated to the appellants vide letter no. ROC/CTC/AO/Sec.2O3 I 5785 I 2024 I 376(5) dated O5.O7.2024.T}:,e appeal was filed within 60(sixty) days as per Section 454(6) of the Companies Act, 2013. 2. As per the aforesaid adjudication order of the Registrar of Companies, Cuttack has issued a show cause notice for violation of section 203 of the Act vide letter no. ROC/Sec.454lSec.203(1)(iii)/00s78s 120241213(s) dated 21.05.2024 to the said Company and its officers. In this regard, no satisfactory reply was received by the ROC, Cuttack, from the Company and its officers for the aforesaid show cause notice. 3. Considering the above facts and circumstances of the case, the Adjudicating Authority has imposed Penalty for violation of Section 203 of the Act as under: - 3lPage tt Ma:<imum Penalty in INR (as per law) on Officers in default i.e. l.Vikash Gupta 2.Pankhuri Agarwal 3.Raviksnt Sharma Morimum penalty on the Company in INR (as per law) No. of days in default Documents required to be filed Rs. 5,00,000 on each officer in Rs. 5,00,000 2920 days for the $qpointme qtN nt of Whole Company

imum penalty on the Company in INR (as per law) No. of days in default Documents required to be filed Rs. 5,00,000 on each officer in Rs. 5,00,000 2920 days for the $qpointme qtN nt of Whole Company

Secretary under section 203(Ixiii) of the Companies Act, 2OI3 read with Rule 8 of the Companies ( Appointment and Remuneration of Management Personnel) Rule, 20t4. financial year 2005- 06 to 31.03.2014 and 1277 days from oL.o4.2014 to 30.o9.20t7 default (5,0o,0003) :15,00,000 Total 5,00,000 15,00,000 i.e. 5,00,000 3 (officers in default) each 4. Having considered the facts and circumstances of the case and after taking into account the factors above, ROC, Cuttack imposed a penalty of Rs. 5,00,000/- (Rupee Five Lakh Only) on the concerned Company and Rs. 15,00,000/- (Rupees Fifteen Lakhs OnM i.e. Rs. 5,00,000/- (Rupees Five Lakh Only) on each officer, under Section 203(l)(iii) of the Act. 5. The appeal was heard on 17.07.2025. During the hearing, the Authorised Representative, Shri. Nitin Daga, Ld. Practicing Chartered Accountant, was directed to make submissions regarding the infirmities in the order passed by the Registrar of Companies (RoC). The Authorised Representative submitted that Ms.Pankhuri Agarwal and Mr Ravikant Sharma were appointed as CFO/directors 4lPage

he infirmities in the order passed by the Registrar of Companies (RoC). The Authorised Representative submitted that Ms.Pankhuri Agarwal and Mr Ravikant Sharma were appointed as CFO/directors 4lPage

on 01.1O.2017 and L4.12.2020 respectively and therefore RoC erred in imposing penalties on them, as they are not officer in default during the relevant period. It was further submitted that the maximum penalty, if any, should be levied only on Mr. Vikash Gupta, who was the director during the default period. In support of this contention, the Authorised Representative submitted written representations seeking appropriate relief. 6. Upon examination of the records and the submissions made by the Authorised Representative, it is observed that Ms Pankhuri Agarwal and Mr Ravikant Sharma were appointed on }L.IO.2OLT and 14.t2.2O2O respectively while the default relates prior to their appointment as Directors.. This fact is corroborated by the Master Data of the company available on the MCA Portal. Based on the perusal of the documents and the representations made during the hearing, it is evident that Ms Pankhuri Agarwal and Mr Ravikant Sharma cannot be held liable. 7. ln view of the above facts and circumstances and considering that a cogent ground has been made out by the Compny, the order of the Registrar of Companies, Odhisha dated 05.07.2024 is modified as under: 5lPage 56 o-

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cts and circumstances and considering that a cogent ground has been made out by the Compny, the order of the Registrar of Companies, Odhisha dated 05.07.2024 is modified as under: 5lPage 56 o-

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Documents required to be frled No. of days in default Maximum penalty on the Company in INR (as per law) Maximum Penalty in INR (as per law) on Officers in default i.e. Vikash Gupta Appointment of Whole Time Company Secretary under section 203(I)(iii) of the Companies Act, 2Ol3 read with Rule 8 of the Companies ( Appointment and Remuneration of Management Personnel) Rule, 2014. 2920 days for the financial year 2005-06 to 31.03.2014 and 1277 days from 01.04.2014 to 30.09.2017. Rs. 5,00,000 Rs. 5,00,000 on each oflicer in default (s00000/-. 1) =5,00,000/- Total 5,00,000 5,00,000 8. The Company and directors/officers of the company shall pay the penalty from out of their own pockets. The penalty shall be paid within a period of 90 days from the date of receipt of the copy of the order. Further, if the company and its directors fail to deposit the penalty amount within the prescribed time limit action under section 454 (8) (i) and (ii) of the Companies Act, 2013 shall be initiated against the Company and its Directors. 6lPage

l to deposit the penalty amount within the prescribed time limit action under section 454 (8) (i) and (ii) of the Companies Act, 2013 shall be initiated against the Company and its Directors. 6lPage

9. The instant Appeal stands disposed of accordingly Signed this on the 27th day of October, 2ol25. copy to: Minerals Limited P-25, Civil Township, Rourkela, Orissa-769004. (CIN : U26941 OR 1 999PLC005785)
10. Vikash Gupta (DIN- 01326705) AT- 1/ 15, Civil Township, Rourkela, 769004, Orissa.
11. Pankhuri Agarwal (DIN/PAN- BJZPA0620D) (CFO) AT-G9, First Floor, Civil Township, Infront of Sanjivini Park, Rourkela,769004, Orissa
12. Ravikant Sharma SSS/3, Civil Township, Dist. Sundergarh, Rourkela, Cuttack, Odisha-7530 1 4
13. ROC-cum-OL Odhisha 2"d and 3'd floor, Corporate Bhawan, Plot No. 9(P), Sector-1, CDA, Cuttack, Odhisha-753014- For information (Rakesh Kumar Tiwari) REGIONAL DIRECTOR (ER) TlPage