Scheme for Condonation of Delay

[For Companies restored between 1st December, 2020 to 31st December, 2020 u/s 252 of the Companies Act, 2013]

♦ The Ministry of Corporate Affairs (MCA) has introduced the Companies Fresh Start Scheme, 2020 (CFSS-2020) through General Circular No. 12/2020 dated 30th March, 2020 and through General Circular No. 30/ 2020 dated 28th September, 2020 which was extended till 31st December, 2020.

♦ It is important to note that such Companies Fresh Start Scheme, 2020 (CFSS-2020) is no longer applicable for various filings under the provisions of the Companies Act, 2013.

Scheme for Condonation of Delay

♦ However, the Ministry of Corporate Affairs (MCA) received various representations from the Stakeholders for relief as;

  • Some companies had preferred appeals under Section 252 of the Companies Act, 2013 against the striking off the names of the companies before the respective Benches of the National Company Law Tribunal (NCLT);

and

  • the orders by the National Company Law Tribunal (NCLT) were issued during the month of December, 2020.

♦ Due to this, such companies could not avail the benefit of filing under the Companies Fresh Start Scheme, 2020 (CFSS-2020) by 31st December, 2020 and are liable to be levied additional fees upon filing overdue e-forms.

♦ In view of above, the Ministry of Corporate Affairs (MCA) vide General Circular No. 03/2021 dated 15th January, 2021 introduced the Scheme namely, “Scheme for condonation for delay for companies restored on the Register of Companies between 1st December, 2020 and 31st December, 2020 under Section 252 of the Companies Act, 2013” for the purpose of condoning the delay in filing e-forms with the Registrar, insofar it related to charging of additional fees on account of delay in such filing.

Scheme for condonation for delay for companies restored on the Register of Companies between 1st December, 2020 and 31st December, 2020 under Section 252 of the Companies Act, 2013 which is Effective form 1st February, 2021 to 31st March, 2021

Link: https://taxguru.in/company-law/new-mca-scheme-condonation-delay-certain-companies.html

Summary of the Scheme for condonation of delay under Section 252 of the Companies Act, 2013 [Restored between 1st December, 2020 and 31st December, 2020]

♣ Applicability:

  • The Scheme shall be applicable to the Companies which have received order for restoration of the name u/s 252 of the Companies Act, 2013 and was disposed of between 1st December, 2020 to 31st December 2020.

♣ Duration of the Scheme:

  • The Duration of the Scheme for filing any overdue e-forms by such companies shall be starting from 1st February, 2021 to 31st March, 2021.

♣ Forms for which the Scheme shall be applicable:

  • The Scheme shall be applicable for all e-forms except the following;
    • E-form SH-7: Increase in authorized capital;
    • Any charge related documents (E-forms CHG-1, CHG-4, CHG-8 & CHG-9)

♣ Applicable fees:

  • Normal filing fees under the Companies (Registration Offices and Fees) Rules, 2014

♣ Important Point:

  • It shall be noted that the Scheme is not applicable for those companies whose applications were accepted during 1st December, 2020 to 31st December, 2020 but the National Company Law Tribunal (NCLT) had not issued the order during such period.
  • Only those companies are eligible for this scheme who have been issued order during 1st December, 2020 to 31st December, 2020.

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Disclaimer: This note has been prepared for general guidance on matters of interest only and does not constitute a professional advice. In no Event the author/Firm shall be liable for any direct, indirect, special or Incidental damage resulting from or arising out of or in connection with the use of this information.

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Mr. Mohit Patel who is an Associate Member of the Institute of Company Secretaries of India, Registered Trade Mark Agent & has done his graduation in commerce from Mumbai University. He has been known for his analytical & unique thought process even in pre-qualification stage. He is known fo View Full Profile

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2 Comments

  1. Anil Goenka says:

    Absolutely, no use for ITR extention dates. The NCLT takes almost 45 days to hear petition for revival of the Co with ROC. It means that in effect the FSScheme was valid for such co’s till 15/11 or 30/11. It is unfair. The MCA should have collected data from all NCLT’S to arrive at the cut off date. Let’s hope the MCA will hear us.

  2. Ashoke says:

    Must extend due dates of various forms for existing companies die to covid period; ITR extension is of no use if ROC dates are not done. Both are correlated. Aim should be to get updates not to collect penalties.

    Easy the strike off process
    If 100% shareholders are okay with closing decisions, then why it is not allowed by ROC ?

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