The Evolving Landscape Of Adjudication Under The Companies Act: From Manual To E- Adjudication
- IJLLR Journal
- Aug 4
- 1 min read
Sarvesh Potdar, CS Professional - Institute of Company Secretaries of India
Bachelor of Commerce, V.G. Vaze College of Arts, Science, and Commerce, Mulund (East), Mumbai
ABSTRACT:
This paper undertakes a comprehensive analysis of the paradigm shift in corporate adjudication under the Companies Act, 2013, with particular emphasis on the transition from traditional manual proceedings to a technologically driven e-adjudication framework. Tracing the legislative evolution from the Companies Act, 1956 to the implementation of Section 454 and the Companies (Adjudication of Penalties) Rules, 2014, the study contextualizes the emergence of administrative adjudication within the broader regulatory architecture. It explores the decriminalization of compoundable corporate offences, the decentralization of penal powers to adjudicating officers, and the statutory recognition of electronic procedural mechanisms under the MCA21 Version 3.0 platform. The paper critically evaluates the operational dynamics of the e-adjudication module, its alignment with digital governance objectives, and the procedural safeguards instituted through the Companies (Adjudication of Penalties) Amendment Rules, 2024. Further, it addresses the jurisprudential implications surrounding digital evidence admissibility, natural justice in virtual hearings, and data security under India's cyber law framework. Concluding that e- adjudication is not merely an administrative innovation but a strategic regulatory overhaul, the paper positions it as a cornerstone for fostering regulatory efficiency, stakeholder transparency, and ease of doing business in India.
