CONDONATION OF DELAY NOT FILING SCHEME

Among strike off companies waiting for revival considering it a lost opportunity where their revival orders from the National Company Law Tribunal comes after the expiry of the scheme. Condonation of Delay Scheme, 2018 essentially is about of condonation of delay in filing of annual accounts and annual returns by defaulting companies. The scheme is not for the revival of strike off companies nor imposes any restriction on normal route available for condonation of delay given under Section 460 of the Companies Act, 2013. A company failed to have the benefit of condonation of delay under the scheme may avail normal route. Let us discuss briefly.

Condonation of delay schemes usually opens a window to facilitate either filing of forms, documents, and return with the waiver of payment of additional fees and/or easy condonation of delay. The present scheme as a basic feature grant condonation of delay to defaulting companies.

The special feature of the present scheme is to grant an opportunity to person disqualified to be a director or to continue as a director to file all pending annual accounts and annual returns of their companies. Few stakeholders are misunderstanding it as immunity scheme. A revival of strike off companies and removal of disqualification of directors are not within the scope of the scheme. However, the scheme hint in paragraph 4(iv) that the scheme saying that where the director makes good their default their DIN may remain activated. This, prima facie, does not mean any removal their disqualification as the Companies Act, 2013 does not mandate any removal of disqualification in its present form.

Among strike off companies waiting for revival considering it a lost opportunity where their revival orders from the National Company Law Tribunal comes after the expiry of the scheme. The National Company Law Tribunal, logically order revived companies to file all pending annual filing within a reasonable time and Ministry of Corporate Affairs on the filing of a copy of the order should facilitate the order either by activation of DIN of Directors or permitting them to appoint a new set of directors.