writ petition filed in Delhi high court raising concern for erratic functioning of MCA

Tejpal Sheth (Practising company secretary-visiting fa)   (1933 Points)

26 May 2016  
A writ filed in Delhi High Court raising concern for erratic functioning of MCA website was admitted on 24th May 2016. CHAMBERS OF CHARTERED PROFESSIONALS ..... Petitioner
Through Mr.Kunal Sabharwal, Advocate.
versus
UNION OF INDIA & ORS ..... Respondents
Through Mr.Abhay Prakash Sahay, CGSC
with Mr.Syed Husain Adil Taqvi,
Advocate. main points of Writ petition are as under:- A) Issue writ of Mandamus directing the Respondents:
i. To remove the errors and technical
faults/glitches/errors/fallacies in the V2R2 system launched
by the Respondents on 28.03.2016 (New System) due to
which the members of the Petitioner and various other
stakeholders are facing grave/serious difficulties in
discharging their professional duties & making compliance
with the provisions of the Companies Act, 2013 and rules
framed thereunder and huge loss of business, time and
money is being caused to companies, limited liability
partnerships and crucial decisions to be taken by such
entities are hanging in the midst without reaching to its
logical end;
ii. To refund the additional fee charged by them along with
pendent lite interest @ 12% per annum, from the members
of the petitioner and other stakeholders re the e-forms filed
between 25.03.2016 to 21.04.2016 (both dates inclusive)
(Relevant E-forms) in terms of the Circular dated
12.04.2016 issued by the respondent no.1.
iii. Restrain the respondents from charging any additional fee
from any user/stakeholder, including the members of the
petitioner, at the time of online submission of the E-Forms
until and unless the technical glitches in the New System are
resolved completely;
iv. During the pendency of this Writ Petition, the respondents
should be called upon to explain the steps that they have
taken thus far to rectify the faults in the New System as there
were representations/complaints filed by the stakeholders,
from all over the country;
v. Unless and until the New System starts functioning properly,
the previous system or any other efficacious online system
be introduced with immediate effect, as a makeshift
arrangement, so as to enable the stakeholders to function
their day to day business affairs, which are otherwise
hindered; and
B) Pass any other order(s)/direction(s)/writ(s) as this Hon’ble
Court may deem fit and proper in the facts and circumstances
of the present case.
The grievance of the petitioner society is that V2R2 system
launched by the respondents are not functioning properly and the
members of the petitioner society are not able to discharge their duties
effectively, which is resulting in losses to their clients and to the
public in general.
Learned counsel for the respondents, who appears on advance
notice, admits to glitches in V2R2 system, but states that the
respondents has waived off the additional fee payable by the
companies for filing between 20th March, 2016 to 30th April, 2016
vide circular dated 12th April, 2016. He also states that the system
shall be made foolproof by 31st May, 2016.
This Court is not able to appreciate as to why without proper
trials being carried out, a new system with glitches was „let loose‟ on
the public at large. It seems prima facie to be a case of lack of
supervision by the officials in-charge.
Issue notice.
Abhay Prakash Sahay, CGSC accepts notice for the
respondents. The Regional Director (North), MCA and the Registrar
of Companies, Delhi are directed to be personally present in Court on
the next date of hearing.
List on 2nd June, 2016.