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PRATHIBA M. SINGH
Urmil Properties And Investment Pvt. Ltd. – Appellant
Versus
Registrar of Companies – Respondent
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.
2. The present petition challenges two impugned orders dated 31st January, 2023 passed by the ROC by which costs to the tune of Rs.2,00,000/- have been imposed on the Petitioner while allowing Petitioner's application filed under Section 77(1) read with Section 87 of the Companies Act, 2013. The costs constitute Rs.1,00,000/- qua each charge for delay of 505 days in filing the particulars of the charge.
3. The submission of Mr. Sikri, ld. Sr. counsel for the Petitioner is that the Petitioner-Company had obtained two loans from the ICICI Bank. Charges in respect of the same were created and filed with the ROC. The Petitioner had repaid both the loans on 10th June, 2021 and obtained no dues certificate. However, unfortunately, on 1st February, 2022, the founder/director Shri Lokesh D. Multani, who had contracted Covid-19, passed away. His son Mr. Puneet Multani thereafter took over charge of the company and started managing day to day affairs. The CHG-4 form was to be filed within a period of 30 days from the date of payment i.e., by 10th July, 2021. However, due to the death of the Founder-Direct
Genuine causes for delay, as recognized by higher courts and provisions under the Companies Act, can lead to reduction of costs imposed under Section 87.
Delay in filing written statements in civil suits may be condoned with reasonable compensatory costs to promote litigation on merits rather than technicalities.
The main legal point established in the judgment is that law supports those who are awake and not those who sleep over their rights, and the court has the discretion to award actual reasonable costs.
The court affirmed the principle that discretionary orders regarding costs by lower courts should not be interfered with unless shown to be excessive or unjust.
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