Condonation of Delay Scheme, 2018 – Brief Analysis

Since there came the Disqualification, it has been concern for corporate fraternity to come out of it.

In a major relief for disqualified directors of companies, the government has provided a three-month window to them to file their returns and normalise operations by launching Condonation of Delay Scheme, 2018. The scheme, however, does not provide amnesty to the directors on the boards of companies that have been deregistered.

1. Application/Appeal to the Tribunal (NCLT) having jurisdiction over the Registered office of the company

2. Copy of appeal or application shall be served on ROC and other parties about restoration at least 14 days before the date of hearing

3. After successful restoration of your company by NCLT, all the statutory returns of the company shall be filed along with the applicable additional fee

A. Detailed procedure: Appeal / Application

• An appeal under section 252(1) and Section 252(3) shall be filed before the Tribunal along with other information as per NCLT Rules, 2016.
• An application filed by the Registrar of Companies if he’s of the opinion that the name of the company has been struck off on the basis of incorrect or inadvertent information, for restoration of name of a company in the register of companies.

B. Attachments with NCLT 9 shall be:

• Copy of MOA and AOA of the Company;
• List of Directors of the Company;
• CTC of the order of Registrar for strike off;
• Available signed Balance Sheets of the Company;
• CTC of Board Resolution passed by the company for making petition to NCLT to make
• appeal against the order of Registrar;
• Affidavit verifying petition;
• Copy of bank draft evidencing payment of application fee;
• Memorandum of appearance.

C. Service of Appeal / Application

A copy of the appeal or application shall be served by the company to the Registrar and on such other persons as the Tribunal may direct, not less than fourteen days before the date fixed for hearing of the appeal or application.

D. Passing of Order

Upon hearing the appeal or the application or any adjourned hearing thereof, the Tribunal may pass appropriate order, as it deems fit.

Where the Tribunal makes an order restoring the name of a company in the register of companies, the order shall direct that-

• The appellant or applicant shall deliver a certified copy to the Registrar of Companies within thirty days from the date of the order in INC 28;
• On such delivery, the Registrar of Companies do, in his official name and seal, publish the order in the Official Gazette;
• The appellant or applicant do pay to the Registrar of Companies his costs of, and occasioned by, the appeal or application, unless the Tribunal directs otherwise; and
• The company shall file pending financial statements and annual returns with the Registrar and comply with the requirements of the Companies Act, 2013 and rules made there under within such time as may be directed by the Tribunal.

E. Where the Tribunal makes an order restoring the name of a company in the register of companies, the order shall direct that-

The appellant or applicant shall deliver a certified copy to the Registrar of Companies within thirty days from the date of the order in INC 28;

On such delivery, the Registrar of Companies do, in his official name and seal, publish the order in the Official Gazette;

The appellant or applicant do pay to the Registrar of Companies his costs of, and occasioned by, the appeal or application, unless the Tribunal directs otherwise; and

The company shall file pending financial statements and annual returns with the Registrar and comply with the requirements of the Companies Act, 2013 and rules made there under within such time as may be directed by the Tribunal.

(Author- CS Ritu Nagpal, AGM_corporate Law, G. K. Kedia & Co.)