Withdrawal of circulars on striking off names of defunct companies from register till further orders - Companies Law - Circular: No. 8 of 2000,

Circular: No. 8 of 2000, dated 24-8-2000, issued by the Department of Company Affairs. Subject:- Withdrawal of circulars on striking off names of defunct companies from register till further orders The Government had announced a scheme, called Company Law Settlement Scheme, 2000 (CLSS-2000) under which a company may file documents such as balance sheet, annual return, etc., along with a lump sum fee as indicated in the scheme. However, it has been observed that some of the companies have approached the Registrar of Companies for striking off the names of the companies taking the shadow of circulars dated 17th February, 1987 and 19th February, 1991 issued by the Department regarding striking off the names. The companies have, however, not filed the annual returns and balance sheets. It is quite clear that as per section 560 of the Companies Act even in case of companies which come for striking off their names under this section, the company should file all the balance sheets and profit and loss accounts and not only one latest balance sheet. This is more necessary to ascertain whether the applicant, seeking sanction under section 560 of the Act has met his obligation to depositors, banks and financial institutions from whom it borrowed the money and paid taxes and other Government and statutory dues. The Government has now reconsidered the circulars referred to above and has decided that the aforesaid circulars are not appropriate. Therefore, Circular Nos. 9/7/83-CL-III, dated 17th February, 1987 and 1/3/91-CL-V, 5/4/91-CL-III, dated 19th February, 1991 are withdrawn till further orders.