Information as to pending liquidation ‑ Delay in filing of statements by, liquidators ‑ Whether can be condoned by Government - Companies Law - No. 8

Circular : No. 8 [F. No. 1 ‑ 10 ‑ 62 ‑ CL ‑ III], dated 22 ‑ 5 ‑ 1973. Subject:- Information as to pending liquidation ‑ Delay in filing of statements by, liquidators ‑ Whether can be condoned by Government 1. The scope of rule 327 of the Companies (Court) Rules, 1959 vis‑a‑vis section 637B of the Companies Act was examined in consultation with the Ministry of Law. The scope of the rule making power of the Supreme Court under section 643 and of the Central Government under section 637B should not be held to overlap. The rule would not intend to create a situation where there may be possibilities of a conflict of jurisdiction. Section 637B should, therefore, be construed as not including within itself what falls within rule 327 made by the Supreme Court under section 643. The Board have been advised that the Central Government have no power to condone delay in filing the statement of accounts under section 551 and that the matter entirely rests with the court in terms of rule 327 of the Companies (Court) Rules, 1959. 2. The failure on the part of the liquidator to file a statement under section 551 is punishable. It is the duty of the liquidator to bring the matter to the notice of the court in any event. In a proper case, the court might grant an extension. If there is no good cause for the grant of extension, the court may also refuse the prayer of liquidator. It does not follow that once the liquidator has committed a default for which he has no excuse he should be perpetual in default. It should, therefore, be open to the Registrar to accept a belated statement under section 611(2) on payment of additional fee but this would not wipe out the default or excuse of the liquidator from the consequences of the default. 3. It would not be out of place to mention here that exemption granted in Schedule X from payment of filing fee for documents required to be filed/registered/ recorded under sections 497, 509 and 551 by the liquidator with the Registrar was withdrawn by Notification No. GSR 260(E), dated 24‑4‑1972. 4. Cases of delayed filing of the said statements should, henceforward, be dealt with as per the instructions contained in this letter.