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Section 404: Fees, etc., to be credited into public account

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Section 403 All 470 Sections of Companies Act Section 405
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Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 404

Section 404 mandates that all fees, charges, and other sums paid to the Registrar or the Central Government pursuant to the Act must be paid into the Public Account of India.

  • Mandatory Credit to Public Account: Compels the unconditional deposit of all registration fees, search fees, additional fees, and administrative receipts into the Public Account of India.
  • Non-Commingling of Regulatory Receipts: Ensures that statutory receipts collected by the Ministry of Corporate Affairs and RoCs are integrated into the sovereign public accounts system under constitutional oversight.
  • Fiscal Transparency and Audit: Subjects all collected fees to public audit by the Comptroller and Auditor-General of India, maintaining executive financial accountability.
Key Landmark Precedents:
  • Kewal Krishan Puri v. State of Punjab, (1980) 1 SCC 416: The Supreme Court reaffirmed that regulatory fees deposited into public accounts must maintain a broad correlation to the services rendered by the statutory administration.
  • Bhim Sen v. State of J&K, AIR 1970 SC 1775: Held that constitutional mechanisms governing public accounts guarantee that all statutory collections are accounted for in conformity with legislative appropriations.
Courtroom Practice & Strategic Litigation Guidance:

In public interest litigation or constitutional challenges challenging fee hikes on the MCA portal, examine whether the fee structure reflects excessive fiscal extraction rather than regulatory cost. Rely on Section 404 to compel disclosure of the ledger accounts and fee utilization data through C&AG audit reports.

Section 403 All 470 Sections of Companies Act Section 405