RoC Imposed Penalty of INR 20 Lakhs On Holding Duplicate Director’s Identification Number (DIN)

In the matter of Mrs. Anubama

(F. No. ROC/CHN/ANUBAMA/ADJ/S. 155/2024)

The Applicant applied for one DIN on 09.01.2008 and inadvertently applied for a second DIN on 23.04.2013. The Applicant was appointed as director in various companies using both the DIN. The Applicant filed an application to surrender duplicate DIN in form DIR-5 on 16.07.2024. However, such a form was returned with the remark that the DIN holder has violated the provisions of Section 155 of Companies Act, 2013 and violation is required to be adjudicated. Accordingly, the applicant filed an application for adjudication in Form GLN-1. The RoC held that The Applicant has violated provisions of Section 155 and accordingly imposed penalty of INR 19.51 Lakhs under Section 159 of Companies Act, 2013.

1. Brief facts of the Case:

• Mrs. Anubama (“The Applicant”) has DIN 0198570 and has a permanent address in the state of Chennai, Tamil Nadu.
• The Applicant submitted an application for adjudication in Form GLN-1 for violation of provisions of Section 155 of Companies Act, 2013.
• As per the application submitted, the Applicant applied for one DIN on 9th January, 2008 and was appointed as directors in various companies using such DIN. Later on, the Director resigned from all the companies.
• The director inadvertently obtained a new DIN on 23rd April, 2013 and appointed as directors in some companies using such DIN.
• The Applicant filed an application in Form DIN-5 to surrender the second DIN on 16th July, 2024.
• However, the form was returned with the remark for resubmission stating that “The DIN Holder has violated the provisions of Section 155 of Companies Act, 2013 and required to be adjudicated the violation under provisions of Companies Act, 2013”.
• Therefore, the Applicant filed application for adjudication.

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2. Relevant Legal Extracts:

Relevant provisions of Companies Act, 2013 is reiterated below for ready reference:

1. Section 155 of Companies Act, 2013:

“155. Prohibition to Obtain More than One Director Identification Number.

No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.”

2. Section 159 of Companies Act, 2013:

“Section 159 – Penalty for Default of Certain Provisions.

If any individual or director of a company makes any default in complying with any of the provisions of of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.”

3. Finding and Analysis by the RoC:

The RoC, Chennai, made following findings and analysis:

• The Applicant obtained her first DIN on 09.01.2008 and second DIN on 23.04.2013.
• The Applicant was holding directorship in various companies using the same DIN.
• The Applicant was holding 2 DINs from 23.04.2013 onwards and the application to surrender DIN was filed in Form DIR-5 on 16.07.2024.
• Accordingly, the applicant has violated the provisions of Section 155 of Companies Act, 2013.

4. Penalty Imposed:

The RoC imposed following amount of penalty under section 159 of Companies Act, 2013:

1. The Company and key managerial personnels may file an appeal against the adjudication order within a period of 60 days from the date of receipt of order in Form ADJ setting forth the grounds of appeal accompanied by a certified copy of this order.
2. Further, as per Section 454(8)(ii) of the Companies Act, 2013, If penalty is not paid within a period of 90 days from the date of the receipt of the copy of the order, officer in default shall be punishable with imprisonment which may extend to 6 months or fine of minimum INR 25,000 which may extend to INR 1,00,000 or both.