CODS Scheme 2018 is not applicable to a case, where due to the non-filing of Returns, the Company was Struck Off from the Register of RoC – Sivagnanagovindasamy Nambi Shareholder cum Director of Manasanthi Mental Health Care Pvt. Ltd. Vs. The Registrar of Companies, Chennai – NCLAT Chennai
Hon’ble NCLAT held that:
(i) The failure to file Returns by a Company under the Companies Act, 2013 has broadly two consequences namely, disqualification of the Directors of the subject Companies, if there is a 3 year failure of filing of the Returns and the Company can be Struck Off from the Register of the RoC, if there is a two year period of default of filing of the Returns. Succinctly put, the disqualification of Directors of a Company is distinctly different from the removal of the Company from the Register of the RoC.
(ii) The Condonation of Delay Scheme (CODS), 2018 is meant for providing an opportunity for the disqualified Director who has defaulted by not filing the Annual Return or Financial Statement for a continuous period of three years. Therefore, the CODS Scheme 2018 is not applicable to the facts of this case, where due to the non-filing of Returns, the Company was Struck Off from the Register of RoC.