Key Developments

The Hon'ble High Court of Judicature at Madras, vide its order dated October 27, 2026 (received on November 2, 2026) in W.P. No. 43342, 43348, 43350 and 43353 of 2026, has granted an interim stay on the adjudication orders passed by the Registrar of Companies (ROC) and consequential order of the Regional Director (RD), Southern Region.

Case Background

The case challenges:

1. Adjudication order passed by Registrar of Companies (ROC) in suo motu adjudication application

2. Consequential order of the Regional Director (RD), Southern Region, in the appeal filed against the ROC order

3. Penalties imposed under Section 135(7) of the Companies Act, 2013 for delay in transferring CSR obligation

4. Financial years involved: 2019-20, 2020-21, 2021-22 and 2022-23

Penalty Amounts

Original ROC Penalty: ₹1,05,42,290.00 total for four years

  • Company penalty: ₹90,03,968.00
  • Two Directors penalty: ₹15,38,322.00 (Officers in default)

Regional Director's Enhanced Penalty:

  • Company penalty enhanced to twice the original penalty imposed by ROC
  • Directors penalty confirmed at original amount

Interim Order Conditions

The Hon'ble High Court has granted interim stay subject to the condition that:

  • Petitioners shall pay 50% of the penalty amount imposed by the original authority (ROC)
  • Amount payable: ₹50,71,145.00
  • Payment timeline: Within 12 weeks from the date of the order (October 27, 2026)

Next Hearing Date

The matter has been posted for further hearing on January 20, 2027.

Financial Implications

As disclosed in Form A:

  • Expected financial implications: In case the company is unable to get a waiver or reduction of the penalty imposed, it will affect the profitability of the company to the extent of the final penalty amount
  • Period applicable: Financial years 2019-20, 2020-21, 2021-22 and 2022-23

Company Representation

The writ petition was filed by the Company and its Managing Director challenging the adjudication orders.

Status Clarification

The interim order is a conditional interim relief and the issues raised in the writ petition are yet to be finally adjudicated by the Hon'ble High Court.

Certification

The disclosure includes a declaration by Haraprasad Rout, Company Secretary and Compliance Officer (Membership No.: A18749), stating that the information provided in Form A is true, correct and complete to the best of his knowledge and belief.

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