Fast Track Scheme under section 560 of the Companies Act - Waiving of the requirement for obtaining certificate from various authorities - Companies Law - GENERAL CIRCULAR NO. 14/2000,

GENERAL CIRCULAR NO. 14/2000, DATED 16-11-2000, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS Subject:- Fast Track Scheme under section 560 of the Companies Act - Waiving of the requirement for obtaining certificate from various authorities 1. Attention is drawn to this Department s General Circular number 10/2000, dated 20-9-2000 regarding Fast Track Scheme under section 560 of the Companies Act. 2. Two common problems have been highlighted by the professionals/professional bodies in following the procedure prescribed in this Scheme. 2.1 First one relates to getting the two affidavits prescribed by the Department signed on a stamp paper by a Judicial Magistrate. It has been represented before the Department that going before the Magistrate is not easy for various reasons. The Department has, therefore, considered this matter in detail and a decision has been taken that the affidavit could be signed by Magistrate or by Notary Public with Seal. 2.2 Secondly, there were, inter alia, the following conditions (mentioned in clause ( e ) and ( f ) of General Circular10/2000, dated 20-9-2000) to be fulfilled by a company which wishes to avail of this Scheme for striking off its name : n A certificate from the auditor that the company is not doing any business and does not owe any amount to Tax Authorities/Banks and Financial Institutions has been submitted. n A clearance certificate of Tax dues (from income-tax, sales tax, excise etc.) has been attached. Various suggestions/representations have been received by the Department informing the non-applicability of Income-tax Act, Sales Tax Act and Central Excise to those companies which have not done any business since their incorporation or for a fairly long period and problems involved in getting these certificates by such companies. It has, therefore, been decided that in case of companies which have not done any business since their incorporation as well as for a fairly longer period can give an Affidavit along with an Indemnity Bond in prescribed form on a stamped paper. 3. Further, on the basis of various representations received from Companies, Professionals, Institutes, Chamber of Commerce etc. the Scheme has been extended by one month. Affidavit We, the following Directors of...............................Limited, (hereinafter called the Company ), incorporated on..../...../.............under the Companies Act, 1956 and having its Registered Office at...................................: 1. Shri........................................., S/o. Shri................., residing at................... . 2. Shri........................................., S/o. Shri.................., residing at.................. . do solemnly affirm as under : 1. We are the only directors of.....................Limited. 2. The Company was incorporated on........................with an object to carry on.......................... . 3. The Company has been inoperative right from the date of its incorporation/the past............................years due to diverse reasons. 4. The Company has assets worth Rs. .................. in the form of cash balance/or no assets* ( strike out the one not applicable) and has liabilities to the extent of Rs............................but the creditors have waived the payment of their dues, and the waiver letters have been enclosed/no liabilities.* (*strike out the one not applicable) 5. As on date the Company is not having any dues towards Income Tax/Sales Tax/Central Excise or any other Central or State Government Departments/Authorities or any local authorities. 6. The Company has/had no workers* (*strike out the one not applicable) as on date and no amount is due any worker who was in the employment of the company. 7. In view of the foregoing, we the Directors of the company have decided to make an application to The Registrar of Companies, ............................................., to strike off the name of the Company from the Registrar of Companies maintained by the said Registrar of Companies, under section 560 of the Companies Act, 1956. 8. In case of any loss(es) to any person or any valid claim from any person, if any, arising out of the striking off the name of the Company from the Register of Companies, by the Registrar of Companies, ....................................., we the Directors of the Company jointly and severally, undertake to indemnity any person for any such losses and indemnity bond to this effect is enclosed. We solemnly affirm that this declaration is true to the best of our knowledge and belief and that it conceals nothing and that no part of it is false. Place : Signature : 1. Shri Date : 2. Shri Indemnity Bond To The Registrar of Companies, ............................................................ 1. We Shri............................., S/o. Shri............................., residing at ..............................and Shri..........................., S/o. Shri....................., residing at........................................, do hereby jointly and severally declare that: ( a ) We are the only Directors of.............................Limited, a Company incorporated on.............................under the Companies Act, 1956 whose Registered Office is situated at............................. . ( b ) That we have made an affidavit dated...................the............................. duly sworn before notary public affirming that the Company ....................................Limited, has assets worth Rs. ..................... in the form of ............................. . The Company has no liabilities. ( c ) Further the Company is not doing/carrying on any business right from the date of its incorporation and the Company is also not intending to do any business or commercial activity as laid down in the main objects of its Memorandum of Association in future. ( d ) Thus the Company is defunct and is requesting the Registrar of Companies,.............................to strike off the name of the Company from the Register of Companies in terms of section 560 of the Companies Act, 1956. 2. In view of the above, we do hereby undertake in writing: ( a ) to pay and settle all lawful claims arising out of the striking off the name of the Company. ( b ) to indemnify any person for any such losses that may arise pursuant to striking off the name of the Company. ( c ) to settle all lawful claims and liabilities which have not come to our notice at this stage, even after the name of the Company has been struck off in terms of section 560 of the Companies Act, 1956. Place : Signature : 1. Date : 2. WITNESSES 1. Signature (Name, Father s name, Address Occupation) 2. Signature (Name, Father s name, Address Occupation)