{"id":251126,"date":"2000-05-16T00:00:00","date_gmt":"2000-05-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/regarding-company-law-settlement-scheme-2000-on-16-may-2000"},"modified":"2016-07-04T22:51:07","modified_gmt":"2016-07-04T17:21:07","slug":"regarding-company-law-settlement-scheme-2000-on-16-may-2000","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/regarding-company-law-settlement-scheme-2000-on-16-may-2000","title":{"rendered":"Regarding Company Law Settlement Scheme 2000. on 16 May, 2000"},"content":{"rendered":"<div class=\"docsource_main\">Lok Sabha Debates<\/div>\n<div class=\"doc_title\">Regarding Company Law Settlement Scheme 2000. on 16 May, 2000<\/div>\n<p id=\"p_1\">Title:  Regarding Company Law Settlement Scheme  2000.\n<\/p>\n<p id=\"p_1\">THE  MINISTER OF LAW, JUSTICE AND COMPANY AFFAIRS (SHRI RAM JETHMALANI):   The Department of Company Affairs has 20  offices of the  Registrars of Companies  in various  States.   Apart from discharging various statutory duties  the  Office of the Registrar of Companies   receives   returns   and documents  from companies under various provisions of the Companies Act, l956 as amended from time to time.  It is mandatory  for the  Companies to  file annually their  Balance  Sheets and Profit &amp; Loss Accounts and Annual Returns in addition to Other Returns.   The  companies which do not comply with the provisions of the act are subject to prosecutions for such violations.\n<\/p>\n<p id=\"p_2\">From the information made available to the  Department by the  registrars of Companies it is found that 5,l6,100 companies were in existence  and 2,60,530 Annual returns and 2,70,961 Balance Sheets were filed  in the  year 1999 alone.  The compliance level for these two documents   is around  50 per cent.  More than five lake prosecutions will have to be launched  by the Government.  Already, 38,603 cases are pending in various  courts as on 3l.03.l999.    Experience has shown that disposal of prosecution cases takes considerable time.  Courts generally levy a nominal penalty while disposing of cases.   The results are not commensurate with the time and effort that go into obtaining orders of the Hon\u2019ble Courts.    Experience shows that  prosecutions do not really  solve the problem  of widespread non-compliance.\n<\/p>\n<p id=\"p_3\">\t  In order to effectively ensure that during the  Millennium Year we start with a clean slate, it is proposed to introduce a scheme called &#8220;The Company Law settlement Scheme 2000&#8221;.  The Scheme would involve the  applicant Company   or the officers to  make a declaration to the relevant Registrars of Companies  that  within the  stipulated time the Company will apply with necessary fees  seeking immunity from prosecution and compounding of the period of delay involved in filing.   The quantum of fees which  will have to be paid by the Company will depend upon the number of documents in respect of which the default has taken place and the period of delay involved in filing them.    Fees will be directly proportional to the extent of immunity sought.\n<\/p>\n<p id=\"p_4\">The Scheme will be in operation for a limited period of three months from l.06.2000  to 31.08.2000.   The Scheme will permit defaulting companies to file all  pending documents  on payment of lump sum amount based  on the period of delay as per following table:\n<\/p>\n<p id=\"p_5\"> S. No.\tNo. of Documents\tAmount payable for\tAmount payable for <\/p>\n<p>\t\tdelay less than 3\tdelay period more <\/p>\n<p>\t\tyears\tthan 3 years.\n<\/p>\n<p id=\"p_6\">i)\tUpto 2\tRs. 2,500\/-\tRs. 3,000\/-\n<\/p>\n<p id=\"p_7\">ii)\tUpto 5\tRs. 5,000\/-\tRs. 6,000\/-\n<\/p>\n<p id=\"p_8\">iii)\tUpto 10\tRs. 7,500\/-\tRs. 9,000\/-\n<\/p>\n<p id=\"p_9\">iv)\tMore than 10\tRs. 10,000\/-\tRs. 15,000\/-\n<\/p>\n<p id=\"p_10\">\tThe Scheme has been  drafted after discussing  the matter extensively  with officers in the Department as well as in the Field  Offices and after  consultations with the  Institute of Chartered Accountants of India  (ICI), Institute of Company Secretaries of India (ICI), Institute of Cost and works Accountants of India (IOWA) and other individuals and organisations.\n<\/p>\n<p id=\"p_11\">Pamphlets in simple language explaining the Scheme will be got  printed and will be distributed through field offices and it is proposed  to utilise the good offices of the  three Institutes  which have  readily come forward and  responded in a positive manner.\n<\/p>\n<p id=\"p_12\">\tI am confident with the implementation of the Scheme  the companies all over the country can look forward to have complete peace of mind by paying one time lump sum amount.   Besides he public will also have access to up-to-date  information of the companies on various financial matters involving the  Company will be tremendous use to the members of the public.\n<\/p>\n<p id=\"p_13\">I appeal  through this House to all the companies to  come forward  to avail of this one time opportunity.  I also appeal to the  Captains of the industry and all professional  bodies to use their good offices to ensure that individual companies come forward and take full advantage of this one time offer. I wish also to state that after the  expiry  of the period i.e. the 31st August, 2000, the  department will come down with a heavy hand   on the erring companies and also that the fines will be increased to 10 times  the present amount.\n<\/p>\n<p id=\"p_14\">\t If the scheme succeeds,   about Rs.l00 crore will accrue as income to the department of Company Affairs.   The said amount is proposed to be spent on  computerising  and modernising the work of the Department  and streamlining its operations.\n<\/p>\n<p id=\"p_15\">&#8212;&#8212;\n<\/p>\n<p id=\"p_16\">SHRI <a class=\"marker_ref\" href=\"\/search\/?formInput=PAWAN%20KUMAR%20BANSAL\" id=\"a_1\">PAWAN KUMAR BANSAL <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=CHANDIGARH\" id=\"a_1\">CHANDIGARH<\/a>): This provides a premium on dishonesty of the defaulters and inefficiency of the Government. \u2026 (Interruptions)\n<\/p>\n<p id=\"p_17\">SHRI <a class=\"marker_ref\" href=\"\/search\/?formInput=SOMNATH%20CHATTERJEE\" id=\"a_2\">SOMNATH CHATTERJEE <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=BOLPUR\" id=\"a_3\">BOLPUR<\/a>): Can it be done without changing the law? \u2026 (Interruptions)\n<\/p>\n<p id=\"p_18\">12.15 hrs. <\/p>\n<p>Calling attention to  the matter of urgent Public Importance <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lok Sabha Debates Regarding Company Law Settlement Scheme 2000. on 16 May, 2000 Title: Regarding Company Law Settlement Scheme 2000. THE MINISTER OF LAW, JUSTICE AND COMPANY AFFAIRS (SHRI RAM JETHMALANI): The Department of Company Affairs has 20 offices of the Registrars of Companies in various States. Apart from discharging various statutory duties the Office [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-251126","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Regarding Company Law Settlement Scheme 2000. on 16 May, 2000 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/regarding-company-law-settlement-scheme-2000-on-16-may-2000\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regarding Company Law Settlement Scheme 2000. on 16 May, 2000 - Free Judgements of Supreme Court &amp; 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