FORM MR-1 HAS BEEN FILED WITH DELAY OF 41 DAYS PROBABLY WITH ADDITIONAL FEES. STILL THE COMPANY IS PUNISHABLE BY ROC?

 FORM MR-1 HAS BEEN FILED WITH DELAY OF 41 DAYS PROBABLY WITH ADDITIONAL FEES. STILL THE COMPANY IS PUNISHABLE BY ROC?

MCA CRACKS DOWN ON DELAY IN FORM MR-1 FILING

GARUDA AEROSPACE LIMITED VS ROC, CHENNAI

In a recent adjudication, the Registrar of Companies, Chennai imposed penalties on Garuda Aerospace Limited for delay in filing Form MR-1, reinforcing the strict compliance stance under the Companies Act, 2013.

 WHAT WAS THE ISSUE?

The company filed Form MR-1 (return of appointment of managerial personnel) 41 days beyond the prescribed 60-day timeline.

ROC’s POSITION:

The authority made it clear that:

·      Statutory timelines are mandatory in nature

·      Inadvertence or internal lapses do not constitute a valid defense

FORM MR-1 HAS BEEN FILED WITH DELAY OF 41 DAYS PROBABLY WITH ADDITIONAL FEES. STILL THE COMPANY IS PUNISHABLE BY ROC?

Under Section 196(4) of the Companies Act, 2013, every company must file Form MR-1 within 60 days of appointment of a managerial person.

KEY POINT

Additional fee = procedural compliance

Penalty = consequence of statutory violation

These operate independently.

WHY PENALTY MAY STILL APPLY?

The Registrar of Companies (ROC) treats delayed filing as a default, even if:

·      The form is eventually filed, and additional fees are paid.

·      Late filing means the company failed to comply within the prescribed timeline, triggering penal provisions under:

PENALTY IMPOSED:

COMPANY:	₹51,000
OFFICERS IN DEFAULT:	₹50,000 each ( On Two directors)

 LEGAL BACKING:

Action taken under Section 196 read with Section 454 of the Companies Act, 2013.

KEY TAKEAWAYS FOR PROFESSIONALS & COMPANIES:

✔️ Timely filing of MR-1 is non-negotiable

✔️ Even short delays can result in financial exposure

✔️ Personal liability of directors/KMPs is real and enforceable

✔️ Robust compliance tracking systems are essential

COMPLIANCE INSIGHT:

This case reiterates MCA’s increasing reliance on strict, system-driven enforcement, leaving little room for procedural laxity.

#YOUR COMPLIANCE PARTNER – R V - SECKAR , FCS, LLB 79047 19295,