18 Jan 2121

Scheme for condonation of delay for companies is explicitly applicable to the companies which were restored prior to 31st December 2020 - Delhi High Court

Case : Mohammad Mokaram v. Union of India & Anr. Criminal Appeal No. 1799/2021, 1800/2021

Court : Delhi High Court

Bench : Justice Pratibha M. Singh

Decided on : 18 Jan 2121

Relevant Statutes

Sections 164(2) (a) and 252 of the Companies Act 2013  

Brief Facts and Procedural History

1. The Petitioner is the director of six companies and out of which one is L.M. Technobuilt Private Limited. Due to default in L.M. Technobuilt Private Limited under Section  164(2)(a) of the Companies Act, 2013  which is related to non-filing of financial statements or annual returns for a continuous period for three years and which further results in the company being struck off from the Register of Company. The Petitioner was also disqualified from 1st November 2016 to 31st  October 2021 as director and also his DIN and DSC were deactivated.

The Issue of the Case

Whether the Petitioner’s Company is entitled to avail the benefit of the Scheme for condonation of delay for companies?

The Observations of the Court

1. The Honourable Delhi High Court relied on the order passed by NCLT on 7th  January 2021. The Honourable Delhi High Court heard the arguments made before the NCLT on the behalf of the petitioner. As the Petitioner’s Counsel relied on the scheme i.e. Scheme for condonation of delay for companies restored on the Registrar of Companies Between 1st  December 2020 and 31st December 2020 under Section 252 of Companies Act 2013 dated 15th January 2021.

2. The Honourable Delhi High Court also referred to one judgment i.e. Mukut Pathak & Ors. v. Union of India & Ors, 265 (2019) DLT 506 and held that DIN and DSC of the Petitioners will be reactivated in a week. The Honourable High Court observed that the Scheme of 15th January 2021 is explicitly applicable to the companies which were restored prior to 31st December 2020.

The Decision Held by the Court

The Honourable Delhi High Court held that L.M. Technobuilt Private Limited is entitled to avail as same as the NCLT passed the orders for restoration of the same and which permitted to avail the benefit of the scheme and directed to file its document within the time specified in the scheme.

Click here to view/download the judgement >