Condonation of Delay Scheme (CODS) was seen as a huge relief to the disqualified directors by regularizing the violations and get away with the disqualification. However, because of the ambiguities of the procedure it was not felt breathable. There are also some difficulties and doubts in the corporate world regarding the filing requirements under the circumstances where the company has already filed the petition before National Company Law Tribunal (NCLT) under section 252 [Appeal to Tribunal in case of removal of name of companies from the registrar of companies] of the Companies Act, 2013 during the availability of the scheme and orders are pending from the National Company Law Tribunal (NCLT) and whether such struck off companies can file CODS upon availing orders after discontinuance of this scheme i.e. May 01, 2018.
This dilemma is there because of the paragraph no. 4(v) of the General Circular No. 16/2017 dated December 29, 2017 which quotes as “In the event of companies whose names have been removed from the register of companies under section 248 of the Act and which have filed application for revival under section 252 of the Act upto the date of this scheme, the director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.” However, there was no clarity on the process of how to re-activate the Director Identification Number of disqualified directors of the company which has received the NCLT order?
In reference of the above the Ministry of Corporate Affairs (MCA) has clarified vide General Circular No. 05/2018 dated 17/05/2018 that in such cases the concerned Registrar of Company(ies) ROC shall raise a ticket through Change Request Form (CRF) on the portal of MCA i.e. MCA21 along with a copy of the order of National Company Law Tribunal (NCLT) and e-governances shall re-activate the DIN of the directors of such struck off companies that have been revived through NCLT, to file e-CODS. However there is also one condition as a pre-requisite for re-activation of DIN as follows:
♣ The director shall not be on the Board of Directors of the Company which has been struck off under section 248 (1)
This pre-condition shall be taken care of by the concerned Registrar of Companies (ROC) before raising ticket with Change Request Form (CRF) with E-governance.
Registrar of Companies (ROC) shall, before raising ticket through CRF ensure
- the thorough scrutiny of NCLT order and
- filing of all overdue documents by such struck off companies vide e-CODS and
- had filed petitions before NCLT during the effective period of Condonation of Delay Scheme (CODS).
Thus, ROCs are vested with huge responsibilities of ensuring the correctness of the applications filed by the companies or directors for re-activation of DIN and then only raise the ticket with CRF with E-governance.
All Circulars Relevant to Condonation of Delay Scheme
| Title | Notification No. | Date |
| CODS, 2018- Where petitions have already been filed before NCLT | General Circular No. 05/2018 | 17/05/2018 |
| Condonation of Delay Scheme extended up to May 01, 2018: MCA | General Circular No. 03/2018 | 27/04/2018 |
| MCA extends Condonation of Delay Scheme 2018 (CODS 2018) to 30.04.2018 | General Circular No. 02/2018 | 28/03/2018 |
| Condonation of Delay Scheme 2018- MCA notifies | General Circular No. 16/2017 | 29/12/2017 |
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May I know email address of CBDT