Adjudication order for violation of section 177 of Companies Act, 2013 in the matter of M/s. Kanoria Plaschem Private limited.

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F. No:9/06/ADI/SEC.177 of 2013/ROC(B)/RD(SER)/2025 . BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION MINISTRY OF CORPORATE AFFAIRS, HYDERABAD IN THE MATTER OF COMPANIES ACT, 2013

IN THE MATTER OF KANORIA PLASCHEM PRIVATE LIMITED

• PMs. KANORIA PLASCHEM LIMITED 121a Bommasandra Industria Area, Hebbagodi, Bangalore, Karnataka — 560099.

  • 2.Mr. Ashish Kanoria No.172, 2" Main, 18 Block, RMV 2" Stage, Bangalore, Karnataka —- 560094.

  • 3.Mr. Nagaraja Manjunatha No.305, Gurukrupa, 5 Cross, Annapareddy Layout, Ramamurthy Nagar, Bangalore, Karnataka ~ 560016.

litteesteeeeee ApPellants

Date of hearing: 28.05.2025

Present: Mr. Gokul. R, Advocate

ORDER

1. M/s. KANORA PLASCHEM LIMITED has filed an appeal under section 454(5) of the Companies Act, 2013 along with the above appellants in e-form ADJ vide SRN AB2800826 dated 24.02.2025 against the adjudication order issued vide F.No. ROCB/Adj.454-177/Kanoria Plaschem/Co.No.014461/2024 dated 17.12.2024 under section 454(5) of the Companies Act, 2013 read with

. sections 177 of the Companies Act, 2013 passed by the Registrar of Companies, Bangalore.

2. Registrar of Companies in his Adjudication order dt. 17.12.2024 has stated _ after considering the facts and circumstances of the case that the company and its directors are liable to penalty as prescribed under Sections 178(8) of the Act for violation of Section 177 of the Companies Act, 2013. Further, Registrar of Companies, Bangalore passed an order dated 17.12.2024 after hearing the Authorized Representatives Mr. Keerthi and Mr. Shiva Kumar on 13.11.2024 by fixing penalties as under:

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----- Start of picture text -----<br> Particulars | Penalty imposed u/s 178(8)<br>Company Rs.5,00,000/-<br>Ashish Kanoria, Managing Director | Rs.1,00,000/-<br>Nagaraja Manjunatha, Rs.1,00,000/-<br>| Total /és30""=*a\ Rs.7,00,000/-<br>as = te<br>one?<br>----- End of picture text -----<br>

0,000/-<br>Ashish Kanoria, Managing Director | Rs.1,00,000/-<br>Nagaraja Manjunatha, Rs.1,00,000/-<br>| Total /és30""=*a\ Rs.7,00,000/-<br>as = te<br>one?<br>----- End of picture text -----<br>

3. The appeal was heard on 28.05.2025. Mr. Gokul. R Advocate/Authorised representative has attended the personal hearing on behalf of the applicants on 28.05.2025 before the Regional Director. It was submitted that the company was compulsorily delisted by the Bombay Stock Exchange vide order dated 26.06.2018 and therefore Section 177 is not applicable to the Company with effect from 26.06.2018. The authorized representative of the company has informed that efforts were made to have the master data corrected but it could only be done in 2025. As listing of Companies is governed by SEBI, it became an unlisted company in 2018 even though as per the master data, it continued to be a listed company till 2025.

4. However, there is a violation of section 177 during the period 01.04.2014 to 26.06.2018 for which the company and the officers in default are liable. In this regard it is observed that section 178 has become adjudicable and w.e.f. 21.12.2020. Therefore, the said violation is compoundable.

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5. In view of the matter, the order of the AO is set aside and the company is directed to file a compounding application within 30 days failing which ROC to file prosecution.

Issued on this FRA day of September, 2025.

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s directed to file a compounding application within 30 days failing which ROC to file prosecution.

Issued on this FRA day of September, 2025.

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----- Start of picture text -----<br> [Esse sear gartar/ RICHA KUKREJA<br>+ ** 2 / REGIONAL DIRECTOR(S.E.R.)<br>Ryptiaest Sauare /HYDERABAD<br>----- End of picture text -----<br>

Copy for information and necessary action to:

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1. Registrar of Companies, Ministry of Corporate Affairs, Bangalore, Karnataka.

2. The Joint Secretary, E-Governance Cell, Ministry of Corporate Affairs, New Delhi.

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----- Start of picture text -----<br> Sd l—<br>aN Hal HaHtaT/ RICHA KUKREJA<br>“ & Afi] REGIONAL DIRECTOR(S.E.R.)<br>Re 4 gawara /HYDERABAD<br>----- End of picture text -----<br>

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