ICSI Company Law Request and LLP Law Settlement Plan 2024

The Institute of Company Secretaries of India (ICSI) has formally requested the Ministry of Corporate Affairs (MCA) to consider the implementation of the “Company Law and LLP Law Settlement Scheme, 2024” (CL&LLSS-2024). This offering aims to address the ongoing technical challenges faced by companies and LLPs in filing legal e-forms on the MCA-21 V3 portal. Difficulties such as issues with DSC registration, e-form downloading, master data updating and pre-fill options have led to delays in mandatory applications. As a result, companies risk incurring penalties and legal action under the Companies Act 2013, particularly under Section 451, which imposes higher fines for repeat defaults. The proposed scheme would offer a one-time opportunity for companies to submit overdue applications without penalty, similar to relief schemes introduced in previous years such as the Company Law Settlement Scheme, 2014 and the Company Fresh Start Scheme, 2020. This approach will help. It alleviates the legal and financial consequences faced by companies due to inevitable filing delays, thus increasing business ease and compliance. ICSI is committed to collaborating with MCA to support stakeholders and ensure business operations are not hindered by technical issues.

INSTITUTE
Company secretaries related to India
THE PURSUIT FOR PROFESSIONAL EXCELLENCE
statutory body under an Act of Parliament
(Under the authority of the Ministry of Corporate Affairs)

MCA: OCTOBER/2024 | Date: October 21, 2024

Ms Deepti Gaur Mukerjee
Secretary
Ministry of Corporate Affairs
Government of India
Shastri Bhawan
New Delhi —110 001

Dear Madam,

Subject: Request for the implementation of the Company Law and LIP Law Settlement Plan, 2024 (CL & LLSS-2024)

Greetings of the day!!!

At the outset, the Institute of Company Secretaries of India expresses its sincere appreciation to the Ministry of Corporate Affairs (MCA) for its thoughtful approach towards stakeholders and committed efforts to enhance ease of doing business.

In addition, as you know, the Institute, within the scope of its responsibility, conveys the concerns and problems of the stakeholders to the Ministry and tries to ensure that they are resolved in a timely manner. For our purpose, we would like to draw your attention to the practical difficulties encountered in filling out e-forms on the MCA-21 V3 portal. As mentioned in the past, the majority of issues affecting the completion of forms for a significant number of stakeholders are related to DSC registration, e-Form download, master data update, pre-fill issues, etc. It’s about. Accordingly, the Institute is receiving numerous requests to extend the timelines for filling out forms on the MCA-21 V3 portal.

Due to such technical glitches, companies and LLPs cannot complete their legal applications within the time periods stipulated under the Act, which leads to penalties and legal action against the company. Additionally, the provisions set under the Companies Act, 2013 (the Act) create a stricter framework for defaulting companies, imposing higher surcharges. Article 451 of the law contains a special provision regarding increasing penalties in case of repeated default.

Considering these issues and their implications, we request that companies and LLPs be provided with a one-time opportunity to file their pending documents and e-forms on the MCA-21 V3 portal to cure their defaults and provide immunity from prosecution. This will help them avoid incurring higher fees, fines, and other penalties.

Being aware of these concerns and adopting a softer approach to ensure ease of doing business, the Ministry had previously published circulars to facilitate stakeholders. These circulars facilitated a new beginning Company Law Settlement Plan, 2014 vide General Circular No. 34/2014 dated 12/08/2014, Fresh Start Plan for Companies, 2020 vide no. 12/2020 dated 30/03/2020 and LLP Settlement Plan, 2020 (General Circular No. 13/2020 dated 30/03/2020).

In the light of past precedents and the above-mentioned views, we request you to submit a plan called “Corporate and LLP Law Settlement Scheme, 2024” (CL&LLSS, 2024)” which will provide companies with immunity from prosecution by submitting delinquent documents, condoning delays and granting them immunity from prosecution. will provide them with the opportunity to correct their defaults.

We will be happy to provide any additional information or clarification that may be requested in this context.

Thank you
Kind regards

C S B Narasimhan
Minister,
Institute of Company Secretaries of India