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e-Adjudication platform under Companies Act 2013

Notification no.: G.S.R. 476(E) dated August 5, 2024

Relevant Act/ Rule: Companies Act, 2013, Companies (Adjudication of Penalties) Rules, 2014

Relevant Section/Rule: Section 454, Rule 3A & 4(1)

Facts: Companies (Adjudication of Penalties) Amendment Rules, 2024 have been notified on August 5, 2024 to amend Companies (Adjudication of Penalties) Rules, 2014. The amendment will come into force with effect from 16th day of September, 2024.

Objective: E-adjudication module, has been conceptualised to manage the increased volume of adjudication proceedings by Registrar of Companies (RoC) and Regional Directors (RD) and will facilitate end to end digitisation of the process of adjudication, for the ease of users. It will provide a platform for conducting online hearings with stakeholders and end to end adjudication electronically.

Amendment: Accordingly, after Rule 3, new Rule 3A shall be inserted, which is reproduced herein below –

“3A. Adjudication Platform.- (1) On the commencement of the Companies (Adjudication of Penalties) Amendment Rules, 2024, all proceedings (including issue of notices, filing replies or documents, evidences, holding of hearing, attendance of witnesses, passing of orders and payment of penalty) of adjudicating officer and Regional Director under these rules shall take place in electronic mode only through the e-adjudication platform developed by the Central Government for this purpose.

(2) In case the e-mail address of any person to whom a notice or summons is required to be issued under these rules is not available, the adjudicating officer shall send the notice by post at the last intimated address or address available in the records and the officer shall preserve a copy of such notice in the electronic record in the e-adjudication platform referred to in sub-rule (1):

Provided that in case no address of the person concerned is available, the notice shall be placed on the e-adjudication platform.”

Substitution: For the existing Annexure [(Form ADJ) – Memorandum of Appeal ]to the said Rules, new Form ADJ as annexed to the Notification shall be substituted.

Link: https://www.mca.gov.in/bin/dms/getdocument?mds=ksyWu6kmYbS46oyUYmt6cw%253D%253D&type=open

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