Adjudication order for violation of section 178(2) of Companies Act, 2013 in the matter of M/s. Kanoria Palschem LTD.

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F. No:9/08/ADIJ/SEC.178(2) 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

[KANORIA][PLASCHEM][LIMITED] Ai[M/s.] 421a Bommasandra Industria Area, Hebbagodi, Bangalore, Karnataka — 560099. 2. Mr. Ashish Kanoria No.172, 2™ Main, 1st Block, RMV 2nd Stage, Bangalore, Karnataka — 560094.

3. Mr. Nagaraja Manjunatha - No.305, Gurukrupa, 5" Cross, Annapareddy Layout, Ramamurthy Nagar, Bangalore, Karnataka — 560016. erie Appellants

pate 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 AB2801124 dated 24.02.2025 against the adjudication order issued vide F.No. ROCB/Adj.454-178/Kanoria Plaschem/Co.No.014461/2024 dated 17.12.2024 under section 454(5) of the Companies Act, 2013 read with sections 178(1)(2) 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 Roe)

• and its directors are liable to peyalltramgcecnp™ under Sections 178(8) of the Act for violation of Secti@rgeakee ena. 178(2) of the Companies Act, 2013 respectively. Further, adidtrateor 6 panies, Bangalore passed an cies ay b+ ~

• ease

.

np™ under Sections 178(8) of the Act for violation of Secti@rgeakee ena. 178(2) of the Companies Act, 2013 respectively. Further, adidtrateor 6 panies, Bangalore passed an cies ay b+ ~

• ease

.

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:

||Particulars|Penalty||Penalty||Total Penalty|
|---|---|---|---|---|---|---|
|||imposed _|for |imposed||for||
|||violation|of|violation||of||
|||Sec.178(1)|of |Sec.178(2)||of||
|||the Act||the Act|||
|2|Ashish|Rs.1,00,000/- | Rs.1,00,000/-||||Rs.2,00,000/-|
||Kanoria,||||||
||Managing||||||
||Director||||||
|3|Nagaraja|RS.1,00,000/-||Rs.1,00,000/-||Rs.2,00,000/-|
||Manjunatha,||||||
||CFO(KMP)||||||

3. The appeal was heard on 28.05.2025. Mr. Gokul. R, Advocate/Authorised representative has attended the persona! 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 178 is not applicable to the Company with effect from 26.06.20 18. 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 and Stock Exchanges, the order of the BSE is sufficient evidence of the company ceasing to bea listed company even though as per the master data, it continued to be a listed company till 2025.

SEBI and Stock Exchanges, the order of the BSE is sufficient evidence of the company ceasing to bea listed company even though as per the master data, it continued to be a listed company till 2025.

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this regard it is observed that section 178 has become adjudicable and w.e.f. 21.12.2020. Therefore, the said violation is compoundable.

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 Puaay of September, 2025.

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Copy for information and necessary action to:

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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Ministry of Corporate Affairs, Bangalore, Karnataka.

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

,

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