2018 (3) TMI 1634 - Tri - Companies Law

Replacement of original financial statements as filed before the MCA-21 with the revised financial statements - Held that - In spite of availing the opportunities, the Counsel for the IT Department has not filed the objections even after passing the conditional order that the right of filing the objections shall stand forfeited. It appears from the conduct of the RD, ROC and IT Authorities that they are not interested to file the objections. Therefore, their right of filing the objections stands forfeited. Keeping in view of the facts and circumstances of the case and the submissions made by the Counsel for the Petitioner, I in exercise of the powers conferred under Section 131 of the Companies Act, 2013, permit the Petitioner to replace the original financial statements (Balance Sheets and Profit & Loss Account) for the year ended 31.03.2016 as filed before the MCA-21 on 11.05.2017 with the revised financial statements as approved.

Summary

Issues involved:
1. Failure of RD, ROC, and IT Authorities to file objections.
2. Replacement of original financial statements with revised financial statements.

Issue 1: Failure of RD, ROC, and IT Authorities to file objections

The Tribunal noted that despite being directed to file objections, the RD, ROC, and IT Authorities failed to do so. The Counsel for the IT Department specifically did not file objections even after a conditional order stating that the right to file objections would be forfeited. The conduct of the authorities indicated a lack of interest in filing objections, leading to the forfeiture of their right to do so. The Tribunal considered this non-compliance in its decision.

Issue 2: Replacement of original financial statements with revised financial statements

After considering the facts, circumstances of the case, and submissions made by the Counsel for the Petitioner, the Tribunal invoked its powers under Section 131 of the Companies Act, 2013. It permitted the Petitioner to replace the original financial statements filed with the revised financial statements for the year ending 31.03.2016. The approval was granted for the revised financial statements attached in Annexure-11, which had been approved by the Board of Directors of the Petitioner Company at a meeting on 15.12.2017. Consequently, the Application for replacement was disposed of by the Tribunal.

This judgment by the National Company Law Tribunal, Chennai, addressed the failure of authorities to file objections and allowed the Petitioner to replace original financial statements with revised ones, exercising powers under the Companies Act, 2013.