Explain the consequences of non-maintenance of record citing a leading case.

In the matter of M/s SDU Holdings Private Limited, the Registrar of Companies, Bangalore, has passed an adjudication order by imposing of penalty, for violation of provisions of section 88 of the Companies Act, 2013. As per the provisions of the Companies Act, 2013, every company limited by shares shall from the date of its registration, maintain a register of its members in form no. MGT-1. During the course of enquiry pursuant to section 206 of the Companies Act 2013, the inspection officer persuaded the statutory registers maintained by the company and noticed that the register Form No. MGT-1 maintained by the company is incomplete. Taking on account of defaults, the adjudication officer gave reasonable opportunity of being heard to the company and every officer in default by way of giving personal hearing notice. Consequently, the Adjudicating Officer, after having considered the facts and circumstances of the case and also the submissions made by the company and its director during the personal hearing decided to impose the penalty on the company and its directors for non-compliance of section 88 of the Companies Act, 2013.