In a recent ruling, the Delhi High Court directed that the Condonation of Delay Scheme on its official website with a view to ensuring that wide publicity is given to the scheme.
In October, the petitioner, Shikha Pahuja had approached the High Court contending that her name featured in the list of disqualified Directors published by the Government. She argued that there is no automatic disqualification under Section 164(2) of the Companies Act, 2013 and the petitioner was not issued any Show Cause Notice prior to holding that the petitioner was disqualified as a Director.
A few months ago, MCA, with an intent to crackdown on shell companies, had disqualified more than two lakh directors of shell companies within a span of 15 days, for not filing their financial statements or annual returns for two straight years, violating provisions of the Companies Act, 2013.
With a view to give an opportunity for the non-compliant, defaulting companies to rectify the default, the Central Government has decided to introduce a Scheme namely “Condonation of Delay Scheme 2018” from 1st January 2018 to 31st March 2018.
The Court, through an interim order, had stayed the impugned list of disqualified directors to the extent it includes the names of the petitioners.
Later, the Ministry of Corporate Affairs came with the above scheme to give an opportunity for the non-compliant, defaulting companies to rectify the default.
Dismissing the petition, Justice Vibhu Bhakru said that “It would be apposite to ensure that wide publicity is given to the Condonation of Delay Scheme – 2018. The Registrar (Computers), High Court of Delhi is directed to forthwith place the scheme on the website of this Court.”
