https://www.taxtmi.com/caselaws?id=791671 Section 39(5) of the Companies Act, 2013 is discussed as a penalty provision that does not create a fixed or minimum mandatory penalty; instead, adjudicating officers must apply proportionality factors such as the size of the company, nature of business, public injury, repetition of default, and gain or loss caused. The text also states that failure to separately certify the annexed list of allottees under Rule 12(2) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 remains a technical default despite substantial compliance through Form PAS-3. It further notes that penalties should not be mechanically multiplied against each director and must be calibrated to the nature of the breach. en-us Mon, 27 Apr 2026 00:00:00 +0530 Fri, 15 May 2026 09:15:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791671 Section 39(5) of the Companies Act, 2013 is discussed as a penalty provision that does not create a fixed or minimum mandatory penalty; instead, adjudicating officers must apply proportionality factors such as the size of the company, nature of business, public injury, repetition of default, and gain or loss caused. The text also states that failure to separately certify the annexed list of allottees under Rule 12(2) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 remains a technical default despite substantial compliance through Form PAS-3. It further notes that penalties should not be mechanically multiplied against each director and must be calibrated to the nature of the breach. Case-Laws Companies Law Mon, 27 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791671