TMI Blog2021 (3) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, on a provisional basis. Section 203(5) of the Companies Act provides that if any Company makes any default in complying with the provisions of Section 203 relating to appointment of Key Managerial Personnel, such Company shall be liable to a penalty of ₹ 5 lakhs and every Directors and Key Managerial Personnel of the Company, who is in default, shall be liable to a penalty of ₹ 50,000/- and where the default is a continuing one, with further penalty of ₹ 1,000/- for each day after the first during which such default continues but not exceeding ₹ 5 lakhs. It is evident that the petitioner-Companies have not adhered to the provisions of the Companies Act, especially Section 203 thereof. In such circumstances, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation) on or before 25.04.2019. It is the contention of the petitioners that the website of the Ministry of Corporate Affairs is not accepting e-form ACTIVE submitted by the petitioners for the reason that the paid up capital is more than ₹ 5 Crores and still the petitioners-Companies have not appointed whole-time Company Secretary. 3. It is the case of the petitioners that as per Section 203(5), if any Company makes any default in complying with the provisions, such Company shall be liable for a penalty of ₹ 5 lakhs and Directors and Key Managerial Personnel are personally liable for a penalty of ₹ 50,000/- and if the default is a continuing one, with a further penalty of ₹ 1,000/- for each day. 4. The petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o comply with the requirement regarding the appointment of Company Secretary, the Company and every officer of the Company who is in default shall be punishable with fine which may extend to ₹ 500/- per every day during which the default continues. 8. Heard learned counsel for the petitioners and learned Central Government Counsel appearing for the respondents. 9. As things stand now, the petitioners have been permitted to file e-form ACTIVE, INC-22A without insisting the appointment of a whole-time Company Secretary, on a provisional basis. Section 203(5) of the Companies Act provides that if any Company makes any default in complying with the provisions of Section 203 relating to appointment of Key Managerial Personnel, such C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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