MCA notified the applicability of Condonation of Delay Scheme (CODS), 2018 vide General Circular No 16/2017 Dated 29/12/2017 which is applicable from 01.01.2018 to 31.03.2018 under which DIN of some Disqualified Directors have been activated to allow them to do fillings of all overdue documents. But at the same time the Scheme is only applicable to the Company which is not under the status of strike-off.

It means DIN of  only those Directors are activated whose companies are not under the status of strike-off but having status of ‘Defaulter’ i.e. Companies whose overdue documents are pending for filling up to 30.06.2016.

Flow of CODS 2018

Now who is the “Defaulter” exactly?

This is the biggest question running in the mind of people because almost all the defaulting companies are already strike-off, then on which companies this scheme is actually applicable? And, what is the remedy available to the Strike-off companies under this scheme?

Answer to the First question is, although almost all the defaulting companies are strike-off but still there are many Companies which are defaulter but not striked-off by the ROC due to any of the following reasons:-

  • Open Charges
  • Pending Litigation
  • Pending Enquiry
  • Pending Investigation
  • Pending Compounding, etc.

If these companies had not filled their overdue documents and the Directors are disqualified due to non filling of the documents for 3 years, then under this scheme DIN of those directors are activated to allow them to complete their fillings till continuation of this scheme and fill the CODS Form to activate their DIN permanently.

Now, the Directors of the Companies under strike-off can only take benefit of this scheme when they move towards NCLT for Revival of the Company and the NCLT gives the order for revival within the time frame of the scheme.

After the revival order of company by NCLT, Directors need to complete their overdue fillings and fill the CODS form by 31.03.2018 to avail benefit of this scheme.

So, Directors of Strike-off companies do not get de-motivated…..file the application of Revival in the NCLT as soon as possible and take benefit of the Scheme.

Hope this will help you to overcome you confusion regarding the CODS, 2018.

The author is a Company Secretary in Practice & can be reached at [email protected]

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Qualification: CS
Company: Deepika Shukla & Co. (Company Secretaries)
Location: New Delhi, New Delhi, IN
Member Since: 18 Jan 2018 | Total Posts: 21
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