Penalty under Section 137(3) for Non-Filing of Financial Statements: ROC Cuttack Order for FY 2023-24

The Registrar of Companies, Cuttack, acting as Adjudicating Officer under Section 454 of the Companies Act 2013, has passed a detailed penalty order against DP FINANCIAL CORPORATION OF INDIA LIMITED and its officers for failure to file financial statements for the financial year ending 31 March 2024 within the statutory time limit prescribed under Section 137(1).

This order is a significant reminder for every company and its management that non-filing or delayed filing of financial statements attracts mandatory monetary penalties under Section 137(3), irrespective of size or status, and that non-response to statutory notices can lead to ex-parte adjudication.

Background of Appointment of Adjudicating Officer

The Ministry of Corporate Affairs, through Gazette notification number S.O. 698(E) dated 10/02/2026, appointed the Registrar of Companies, Cuttack as Adjudicating Officer under Section 454 of the Companies Act 2013.

This appointment was made in exercise of powers under Section 454 read with the Companies (Adjudication of Penalties) Rules, 2014, authorising the officer to:

  • Examine violations alleged under the Act and Rules
  • Conduct adjudication proceedings
  • Impose penalties as prescribed under specific provisions, including Section 137(3)

The present matter has been adjudicated under these powers.

Details of the Company and Officers Involved

Company Details

The adjudication proceedings pertain to:

  • Company Name: DP FINANCIAL CORPORATION OF INDIA LIMITED
  • CIN: U65999OR2010PLC012736
  • Act under which registered: Companies Act, 2013 / 1956
  • Registered Office Address:
    PLOT NO-1958/4083,
    FIRST FLOOR CHINTAMANISWAR AREA NA
    BHUBANESWAR KHORDHA
    ORISSA INDIA 751006

This company is registered with ROC Cuttack and is required to comply with all provisions relating to filing of financial statements under the Companies Act 2013.

Officers in Default

The adjudication order identifies the following individuals in relation to the default:

  • DEBASIS PANDA
  • PRAKASH KUMAR SETHI
  • ALOK KUMAR SAHOO

Each of them has been treated as an officer in default for the purposes of penalty under Section 137(3) and proceeded against accordingly.

Statutory Provision: Section 137(3) of the Companies Act 2013

The core provision applied in this case is Section 137(3) of the Companies Act 2013. The order reproduces the statutory text, which provides that:

If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.

In effect, the scheme of Section 137(3) is:

  • Base penalty of ₹10,000 on:
    • The company, and
    • Each responsible officer (as per the hierarchy in the section)
  • Continuing failure penalty of ₹100 per day:
    • For every day of failure beyond the prescribed period
    • Up to a cap of ₹2,00,000 for the company
    • Up to a cap of ₹50,000 for each officer in default