Withdrawal of circular filing of form 8 within 300 days

The Hon’ble Company Law Board vide order dated 3-8-2007 passed under section 141 of the Companies Act-1956 had authorized the Central Government to accept documents relating to registration, modification and satisfaction of charges up to a period of 300 days from the date of event by levying additional fee prescribed in section 611(2)

i.e. not exceeding ten times the amount of fee specified in Schedule X.

2. Pursuant to the aforesaid order dated 3-8-2007, the Ministry vide General Circular

NO.13 of 2007 dated 27th September, 2007 which came into effect from 27th October,

2007 had taken a decision to permit Registrar of Companies to condone the delay

beyond the prescribed period of 60 days and 30 days on all documents relating to

registration, modification and satisfaction of charges up to a period of 300 days from the

date of event by levying additional fee prescribed in section 611(2) i.e. not exceeding ten

times the amount of fee specified in Schedule X.

3. Now, the Hon’ble Company Law Board has passed an order dated 7-5-2008,

which is re-produced as follow:

“(i) The Central Government had filed a petition CP 502/141/2007 under Section

141 of the Companies Act, 1956 seeking for directions of this Board to permit Registrar

of Companies to condone the delay beyond prescribed period of 60 days and 30 days

from the date of registration/modification and satisfaction of charges respectively. On

hearing this application, for reasons stated in the order, I passed an order on 3rd August,

2007 authorising the Central Government to accept registration/modification/satisfaction

of charges up to 300 days from the date of events and had also stipulated that the same

would be effective from the date on which requisite notification was issued by the Central

Government. In terms of the said order, the Central Government issued a Circular on 27th

September, 2007 specifying that the directions contained in the order dated 3rd August,

2007 would be effective from 27.10.2007.

(ii) Now the Central Government have filed an application seeking for permission

to withdraw the Circular dated 27.9.2007 on the ground that the earlier application was

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made for an ad-hoc arrangement to fine tune and smoothen the e-filing process pursuant

to switching over from manual filing to e-filing through MCA 21, e-Governance project

of the Ministry. Now the Central Government has undertaken a comprehensive review of

the Companies Act which inter alia includes updation of Registration of Charges and

therefore the ad-hoc arrangement made through the Circular dated 27.9.2007 does not

require to be continued further and as such the Central Government may be permitted to

withdraw the Circular as the same was issued pursuant to the directions of this Board.

(iii) Heard on the application. Since according to the Central Government, the

purpose for which the directions contained in the order dated 3rd August, 2007 has been

achieved, I grant the prayer of the Central Government to withdraw the circular dated

27.9.2007. A fresh Circular be issued at the earliest withdrawing the Circular dated

27.9.2007 and specifically stipulating that the procedure for seeking condonation of delay

in terms of Section 141 as it stood prior to 27.10.2007 would come into force

immediately”.

4. Now, therefore, pursuant to the order dated 7-5-2008 passed by the Company

Law Board as reproduced above, the following decisions have been taken for

implementation of the said order:-

(i) The aforesaid order dated 7-5-2008 of the Hon’ble Company Law Board

shall take effect from 6th July 2008.

(ii) The decisions taken by the Ministry vide General Circular No.13 of 2007

dated 27th September, 2007 which came into effect from 27th October,

2007 will be in force up to midnight of 5th July 2008.

(iii) The procedure for seeking condonation of delay in terms of Section 141 of

the Companies Act, 1956 as it stood prior to 27-10-2007 would come into

force from 6th July 2008.

(iv) Therefore, documents filed on the portal (www.mca.gov.in), on or after 6th

July 2008 for registration /modification of the charge or for giving of

intimation of payment or satisfaction thereof after a period of 60 days or

30 days respectively, shall not be registered by the concerned Registrar

until the delay is condoned by the Hon’ble Company Law Board.

5. All Registrars of Companies will ensure strict compliance of instructions

contained in this Circular.