During the period of Lock-down, the Ministry of Finance and the Ministry of Corporate Affairs has issued various Press Release and Circulars containing major amendments in the Companies Act, 2013
Article deals with provisions of Companies Fresh Start Scheme (CFSS-2020)
IMMUNITY FROM ADDITIONAL FEES
IMMUNITY FROM THE LAUNCH OF PROSECUTION OR PROCEEDINGS FOR IMPOSING PENALTY
|Immunity to be Granted||Immunity not to be granted|
|In case of filing of belated statement, documents, returns etc. under Companies Fresh Start Scheme, 2020 (CFSS, 2020) to the extent such prosecution or proceedings for imposing penalty pertain to any delay associated with the filing of belated statement, documents, returns etc. only.||Where the Court has ordered conviction in any matter or an Order imposing penalty has been passed by an Adjudicating authority and no appeal has been preferred against such orders of the court or the adjudicating authority before 01.04.2020.|
|Where the defaulting company or its officer in default has filed an appeal against-
Any notice issued or a complaint filed or an order passed by a court or by an Adjudicating authority before-
A Competent Court or Authority for violation of the provisions of the Companies Act with respect to any statutory filing, the defaulting Company in order to avail the Immunity shall withdraw the appeal and furnish the proof of such withdrawal along with Immunity application. i.e. E-Form CFSS-2020.
|Any appeal filed but pending before the Court of Law except related to Statutory filing under the provisions of the Act.|
|1.In case the last date of filing of an Appeal against the Order of the Adjudicating authority under section 454(6) falls b/w 1st March, 2020 to 31st May, 2020 (both days included), a period of 120 additional days shall be allowed from last date for filing the appeal before the concerned Regional Director (RD).
*total time limit is 60 days+ 120 days.
2. No prosecution shall be initiated during such period in so far as it relates to delay associated in filing the document, statement or return etc.
(No Immunity Granted only additional time shall be given to file the appeal)
|Any other consequential proceedings not associated with the filing of belated statement, documents, returns etc.|
PROCESS TO AVAIL THE BENEFIT OF THIS SCHEME
1. The defaulting company has filed all the belated document, statement or return etc. with normal fees.
2. The defaulting company has to file E-Form CFSS-2020 from 01.10.2020 to 31.03.2021.
3. The documents are taken on file or on record or approved by the Designated Authority.
4. There is no fee payable for this form.
5. Based upon the declaration made in CFSS-2020 in respect of belated documents, statement, return etc. filed, an Immunity Certificate shall be issued by the designated authority.
CERTAIN EXCEPTIONS WHEREIN SCHEME SHALL NOT APPLY:
1. Companies against which action for final notice for striking off the Companies has been initiated by the Designated Authority.
2. Where company itself has filed an application for strike off the name of the Company.
3. Companies which have amalgamated under the scheme of arrangement or compromise under the Companies act.
4. Where Company itself has filed an application for obtaining the status of Dormant Company U/s 455 of the Companies Act before this scheme.
5. Vanishing Companies
EFFECT OF IMMUNITY
All the prosecutions pending before the concerned courts and the proceedings of adjudication of penalties U/s 454 of the Companies Act, 2013 against the Companies shall be withdrawn by the designated authority except where the court has ordered conviction or penalty has been passed by the adjudicating authority and no appeal has been preferred by the Company before the commencement of this scheme.
The designated authority, after the conclusion of the scheme, shall take necessary action against the Companies who have not availed the scheme and are in default in filing the belated document, statement, return etc. in a timely manner.
Section 2(29), 2(36), 2(60), 2(90), 403, 454, 455, 460 and Companies (Registration Offices and Fee) Rules, 2014
Vanishing Companies: Those listed companies which
(a) Failed to file returns with Registrar of Companies (ROC) for a period of two years;
(b) Failed to file returns with Stock Exchange (SE) for a period of two years (if it continues to be a listed company);
(c) It is not maintaining its registered office of the company at the address notified with the Registrar of Companies/ Stock Exchange; and
(d) None of its Directors are traceable.
The article is written by CS Aditya Mohan Khandelwal, Practicing Advocate in Jharkhand High Court, Ranchi. In case of any query, please contact on provided phone number or email id.
The entire contents of this document have been prepared on the basis of relevant provisions of the Act and as per the information existing at the time of the preparation by way notification, circular, order etc. Although utmost care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.