The company received a remittance of INR 50,00,000 in its bank account on May 17th 2021 for share capital contribution regarding the subscription of equity shares of the company, and the Board approved the issuance of share certificates to the subscribers to the Memorandum of Association via resolution dated May 17th 2021. The share certificates were issued and delivered to the respective subscribers on May 27th 2021.
In the case of subscribers to the memorandum, there was a 30-day delay in the issuance of equity share certificates, which was beyond the statutory deadline of two months from the date of incorporation, i.e. February 27th 2021. On May 27th 2021, the default was remedied by issuing and delivering share certificates to its subscribers. Section 42 of the Companies Act, 2013 specifies, among other things, that if any default is made in complying with the terms of sub-sections (1) to (5), the company and each officer of the company who is in default would be liable to a penalty of 50,000 rupees.
In light of the foregoing, the Registrar of Companies of the National Capital Territory of Delhi and Haryana has imposed a penalty of Rs. 50,000 on the company and its three directors, totalling INR 2 lakh.