' This petition has been filed under section 131(1) of the Companies Ordinance, 1984, by the petitioner, M/s Lodhran Cotton Ginner (Pvt) Limited. The petitioner had obtained credit facilities from Habib Bank Limited to the extent of rupees one million against mortgage of their land, buildings and machinery located in Lodhran, District Multan, and mortgage deed dated 3-11-1987 was registered with the Registrar of Conveyances at Lodhran, Punjab. Under section 121(1)(c) of the Companies Ordinance, 1984, the petitioner company was required to get the charge registered with the Registrar of Companies within 21 days of the creation of the mortgage/charge. Admittedly the charge was not registered within the prescribed time and Mr. Zafar Alam Khan, learned counsel for the petitioner company, submits that there is a delay of 633 days in the registration of the charge with the Registrar of Companies. Under section 134(1) of the Companies Ordinance, it is, inter alia, provided that if any company makes default in filing particulars of any charge created by the company with the Registrar of the Companies, the company and every officer of the company shall be liable to a fine not exceeding Rs,500 for every day during which default in filing such particulars continues.
2. This petition has been filed under section 131 of the Companies Ordinance, 1984, praying that, in the interest of justice, this Court may condone the delay in submitting the documents for registration of charge by extending the time for registration thereof. I have heard Mr. Zafar Alam Khan, learned counsel for the petitioner. Notice of this petition had been sent to the Registrar and the notice was also advertised in press. A written Statement has been filed by Joint Registrar, Corporate Law Authority, Company Registration Office, Karachi, in which it has been submitted that there is a delay of 1 year 8 months and 28 days in approaching the Corporate Law Authority for registration of the charge and, under section 134, a fine is to be imposed and, in the circumstances, the Court may penalise the petitioner company as provided under the law.
' The reason given for delay in applying for registration of the particulars of the aforesaid mortgage is inadvertence on the part of the petitioner company and that no prejudice has been caused to any party on account of delay in making the application for registration. According to the learned counsel, no order may be passed for penalising the petitioner and time for registration is extended.
The law required action to be taken for registration of particulars of the charge within 21 days under section 121(1)(c) of the Companies Ordinance.
4. The law further provided by section 134 the maximum penalty for default in compliance of the aforesaid requirement. However, the competent authority for imposition of penalty in this case is the Registrar who is the head of the organization for the registration of companies in Pakistan under section 476(1)(b) of the Ordinance, as, under section 121(1)(c), the maximum fine per day would be Rs,500. In the circumstances, this Court cannot penalize the petitioner. The competent authority under section 476 can take action under that provision after notice to the concerned party and providing them with a hearing.
5. Subject to the aforesaid observations, the delay in filing the application for registration of the particulars of the aforesaid mortgage is hereby condoned. J. Misc. No,50 of 1990 stands disposed of.