As per Section 252 of the Companies Act of 2013, the Scheme for Condonation of Delay is applicable to all those companies who were restored between the time frmae of December 1, 2020 to December 31, 2020.
· The Companies Start Fresh Scheme, 2020 or commonly known as the CFSS 2020 was first introduced by the Ministry of Corporate Affairs (MCA) on March 30, 2020 via a General Circular No. 12/2020, as well as the General Circular No. 30/2020 which was issued on September 28, 2020 which was further extended till December 31, 2020.
· Another important point to remember is that, for various filings as per the provisions of the Companies Act, 2013, the Companies Start Fresh Scheme will not be applicable now.
· Various shareholders from around the world have sent representations to the Ministry of Corporate Affairs asking for certain reliefs. They stated:
o There are certain Companies who did prefer the appeals as per the provisions of Section 252 of the Companies Act, 2013. These appeals were made as to oppose the striking off the names of certain companies. These appeals were made before the National Company Law Tribunal (NCLT), respective Benches.
As well as
o The order passed by the National Company Law Tribunal were issued in the month of December, 2020.
· This is the major reason as to why many Companies have failed to enjoy the benefits of filing under the Companies Start Fresh Scheme, 2020 (CSFS 2020) by December 31, 2020. They would also be liable to pay the late fees due to filing the e forms after the due date.
· Considering the plea of the shareholders, the Ministry of Corporate Affairs through the General Circular 03/2021 which was issued on January 15, 2021 which introduced the Scheme called, “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”, in order to condone the delay which occurred in filing the e forms with the Registrar of Companies. These changes are with respect to the additional fees that was levied on the business for the delayed filing.
· As per Section 252 of the Companies Act of 2013, the Scheme for Condonation of Delay is applicable to all those companies who were restored between the time frameof December 1, 2020 to December 31, 2020. This scheme will be valid from February 1, 2021 till March 31, 2021.
We have made a detailed analysis of the Scheme for Condonation of Delay as per the provisions of Section 252 of the Companies Act of 2013, which was restored between the time frame of December 1, 2020 to December 31, 2020.
· Applicability
All those companies who have received the order to restore their name as per section 252 of the Companies Act of 2013 and it was disposed between the time frame of December 1, 2020 to December 31, 2020 will be able to access this scheme.
· Duration of the Scheme
This scheme will be valid from February 1, 2021 till March 31, 2021. During the said period the companies can file their over - due e forms.
· Forms for which the Scheme of Condonation of Delay will be applicable
All the e forms are covered under the Scheme of Condonation of Delay, except the ones mentioned below:
o E form SH - 7: this is for increasing the authorized capital.
o Any documents related to charge such as e forms CHG - 1, CHG - 4, CHG - 8 as well as CHG - 9.
· Applicable fees
The normal filing fees which is mentioned under the Companies (Registration Offices and Fees) Rules, 2014 will be applicable.
· Important Points to remember:
o Any of Company which even though was accepted with in the mentioned time frame of December 1, 2020 to December 31, 2020 but still the order for the same was not issued within the time frame by the National Company Law Tribunal (NCLT) will not be able to enjoy the benefits of the scheme.
o The Companies which received the order within the mentioned time frame i.e. between December 1, 2020 to December 31, 2020 shall be eligible for the scheme. Visit and know more
