What do you mean by 'Adjudicating' under the Companies Act, 2013? What factors Adjudicating Officer shall consider while adjudging quantum of penalty?

Answer 3A(i) The word "Adjudicating" has not been defined in the Companies Act, 2013. "Adjudication" the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved. Adjudication of Penalty under Companies Act, 2013 means the official imposing of penalty as prescribed under the respective sections of Companies Act, 2013 on the Company and its officers by the designated officer of Ministry of Corporate Affairs. Under Section 454 of the Companies Act, 2013, the Central Government has appointed the Registrar of Companies / Regional Directors as the adjudicating officers for adjudging penalty under the provisions of this Act. As per Ramanathan's Law Lexicon "Adjudication" is the determination of matters in dispute by the decision of a competent court, arbitration of the determination of such matters by the decision of arbitrators, whose decision may not be binding until confirmed by a higher Court or assented to by the parties. Factors determining the adjudging quantum of penalty are as under: As per Rule 3(12) of the Companies (Adjudication of Penalties) Rules, 2014, While adjudging quantum of penalty, the adjudicating officer shall have due regard to the following factors, namely: size of the company; nature of business carried on by the company; injury to public interest; nature of the default; repetition of the default; the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; and the amount of loss caused to an investor or group of investors or creditors as a result of the default. It has been provided that, in no case, the penalty imposed shall be less than the minimum penalty prescribed, if any, under the relevant section of the Companies Act, 2013. As per Rule 3(13) of the Companies (Adjudication of Penalties) Rules, 2014, in case a fixed sum of penalty is provided for default of a provision, the adjudicating officer shall impose that fixed sum, in case of any default therein. Therefore, there is a boundary within which the adjudicating officer has to operate which is confined to only adjudging the quantum of penalty. He cannot wander into the area of ascertaining the merits and demerits of the offence or whether there is a violation of the provisions of the Companies Act, 2013 at all in the capacity of an adjudicating officer.