The High Court dismissed the petition seeking extension of the ...

Companies miss out on extended benefits of Fresh Start Scheme due to strict eligibility criteria, High Court dismisses appeal.

Case Laws     Companies Law

September 14, 2024

The High Court dismissed the petition seeking extension of the 'Companies Fresh Start Scheme, 2020' (CFSS 2020) by a notification dated 15th January 2021. The court held that exemption notifications granting benefits must be strictly construed, depending on the facts of each case. If a party is found eligible under the conditions prescribed, the notification is to be construed liberally; otherwise, it is to be construed strictly. The CFSS 2020 granted exemption from additional fees and immunity from prosecution for delay in filings, applicable only to companies not in the excepted category under clause 6(ix)(a), effective from 1st April 2020 to 30th September 2020. The scheme envisaged entitlement for companies whose restoration orders were passed between 1st December 2020 and 31st December 2020. Since the appellant's restoration order was not passed within this period, the appellant was ineligible for the extended CFSS 2020 benefits, even if 'NCLT' was replaced with 'Delhi High Court'. Consequently, the court found no reason to interfere with the impugned judgment and dismissed the appeal.

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