Airfloa Rail Technology Ltd: High Court Grants Interim Stay on Penalty

Airfloa Rail Technology Ltd and its Managing Director have received an interim stay from the High Court of Judicature at Madras concerning an adjudication order. The order, originally passed by the Registrar of Companies (ROC) and subsequently appealed to the Regional Director (RD), imposed penalties under Section 135(7) of the Companies Act, 2013, for delays in CSR obligations from FY 2019-20 to 2022-23. The total penalty initially imposed by the ROC was ₹1,05,42,290.00 (₹90,03,968.00 on the company and ₹15,38,322.00 on two directors). The RD had enhanced the penalty on the company. The High Court's interim stay is conditional upon the company paying 50% of the original ROC penalty amount (₹50,71,145.00) within twelve weeks. The next hearing is scheduled for January 20, 2027. Failure to secure a waiver or reduction could impact the company's profitability.