Non Receipt of Subscription Money after incorporation

it will be considered as breach of contract by the subscriber and may attract civil action for this As per section 10(2) of the Companies Act, 2013, all monies payable by any member to the company under the memorandum and articles is a debt due from subscriber to the company, therefore the subscriber cannot refuse to pay the subscripttion money, once the Memorandum is registered

Section 10A also prescribes heavy penalties if subscribers to the Memorandum don’t pay the subscripttion money within 180 days from the date of incorporation, or the officer in charge doesn’t file the return.

1. A penalty of Rs 50,000 will be levied on the company if it fails to comply with the mentioned requirement, and
2. Every officer in default shall be liable to a penalty of Rs 1,000 per day for each day during which the default continues subject to a maximum of Rs 1,00,000,