strike off companies

Presently when any company has been struck off by the MCA for any reasons, the only option available is to file a petition with the NCLT to revive the company. This is a time consuming process as well as effort involved. Many such companies have been rendered as “strike off” stage due to various reasons beyond the control of the existing Directors.
Now since July 2018 the additional filing fees for annual forms is on the basis of Rs.100 per day calculation and it is going to hurt companies to remain as non compliant. Filing of petition with NCLT involves time and cost and also clogging of the judicial system with routine applications. NCLT is already over burdened due to the number of cases filed under the Insolvency & Bankruptcy Code, 2016 and other petitions like mergers, amalgamations, oppression cases. In such scenario what is the justification for routine applications involving revival of strike off companies to be filed with NCLT it is not clear and not justified also.
Many companies have various reasons and these are legacy reasons which are genuine in nature due to which they failed in filing the annual documents.Admitted that they are non compliant and have suffered much due to the Director’s DIN becoming de-activated. MCA should now look at an easy process for revival of strike off companies at the ROC/ RD level without involving the judicial bodies in this regard. They can levy a fine or penalty similar to the compounding fines and close the matter. Anyways MCA is gaining due to higher fees from the per day fee structure so the companies are already being penalised in this regard. They should not be further penalised by forcing them to seek redressal from the judicial courts of the country.

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s