Procedure for appearing before Adjudicating Officer

I need to know the procedure for appearing before the Adjudicating Officer under Sec.454 of the Companies Act?

I want to know the expected offence or sections done to the Company? What action can be taken by the officer in case of Show Cause Notice?

Answers (1)

418 votes
The adjudicating officer shall issue a written notice to the company and to every officer of the company who is in default, to show cause, within such period as may be specified in the notice (not being less than fifteen days and more than forty five days from the date of service thereon), why the inquiry should not be held against him: Provided that every notice issued under this sub-rule, shall clearly indicate the nature of non-compliance or default under the Act alleged to have been committed or made by such company and officer in default, as the case may be: Provided further that the adjudicating officer may, for reasons to be recorded in writing, extend the period referred to above by a further period not exceeding fifteen days, if the company or officer (as applicable) satisfies the said officer that it has sufficient cause for not responding to the notice within the stipulated period.

If, after considering the cause, if any, shown by such company or officer, the adjudicating officer is of the opinion that an inquiry should bIf, after considering the cause, if any, shown by such company or officer, the adjudicating officer is of the opinion that an inquiry should be 3 held, he shall issue a notice fixing a date for the appearance of such company, through its authorised representative, or officer of such company whether personally or through his authorised representative.

On the date fixed for hearing and after giving a reasonable opportunity of being heard to the person(s) concerned, the adjudicating officer may, subject to reasons to be recorded in writing, pass any order as he thinks fit including an order for adjournment of the hearing to a future date.

Every order passed under sub-rule shall be dated and signed by the adjudicating officer. The adjudicating officer shall send a copy of the order passed by it to the concerned company or officer who is in default and to the Central Government. While holding an inquiry, the adjudicating officer shall have the following powers, namely:- (a) to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case; (b) to order for evidence or to produce any document, which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry.

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