General Circular No. 10/2000

 

No. 1/5/2000-CL.V

Government of India

Ministry of Law, Justice & Company Affairs

Department of Company Affairs

 

5th floor, `A’ Wing,

Shastri Bhavan,

Dr. R.P. Road, New Delhi.

 

Dated 20th September, 2000

 

CIRCULAR

 

 

To

 

All Regional Directors ( Shri_________________________)

Mumbai/Calcutta/Chennai/Kanpur

 

All Registrar of Companies (Shri ____________________)

 

_________________________________

 

 

 

Subject : Fast Track Scheme -  Section 560 of the Companies Act – reg.

                               

 

                It has come to the notice of the Department that while a large number of companies have been registered but due to various reasons some of them have failed to take off.  The promoters of such companies have been requesting the Government to strike off the name of the company by adopting an easy to follow method  in a time bound manner.

 

2.       A number of representations from professional bodies/ individuals have also been received during the operation of CLSS 2000.

 

3.       Recognizing the urgent  need  , the Department has decided to launch `Fast Track Section 560 Scheme’ with effect from 28TH September, 2000.  Three different coloured forms have been prescribed.

 

a)     White Coloured  Form for applicants of CLSS 2000 upto 31 August, 2000; (Fast Track 1)

 

b)    Pink Coloured Form for applicants of CLSS 2000 from 1st September to 30th September, 2000 (Fast Track II)

 

c)     Blue Coloured Form for all other applicants who have filed the documents with the Registrars  in the past in respect of defunct companies and have sought their names to be struck off.

 

4.       The Blue Form is for those applicants who file their applications after 30th  September, 2000  and  who  wish  to avail the benefit of the Section 560

Scheme.  They will however, be required to pay lump sum fee as per the table given below :

 

 

No. of Documents

Delay of Less than 3 years in filing documents

Delay of 3 years or more in filing documents

 

Upto 2

 

Upto 5

 

Upto 10

 

More than 10

 

Rs.3500/-

 

Rs.6500/-

 

Rs. 10,000/-

 

Rs. 13,000/-

 

Rs. 4000/-

 

Rs.8000/-

 

Rs. 12000/-

 

Rs. 20000/-

 

 

5.            The cost of each forms has been prescribed as Rs. 100/-. The pre-numbered forms will be supplied in the respective office of the ROC’s  and RD’s  throughout the country.

 

6.                 While accepting the forms from the applicants the Registrar will check the following:

 

a)     Payment of due fees;

 

b)    The Board of Directors have approved submission of the application under Section 560 of the Companies Act, 1956;

 

c)     Evidence of identity/Residence of applicants is enclosed;

 

d)    Two affidavits in the prescribed forms have been affirmed on Stamped paper of Rs. 10/-

 

e)     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:

 

f)        A clearance certificate of Tax dues ( from Income Tax, Sales Tax, Excise etc.) has been attached;

 

7.                 On being satisfied that the above has been complied with Registrar

will cause to issue a notice in the Official Gazette inviting objections of any for a striking off the names of all the companies who have completed the formalities within a week.

 

8.       In case any objection is received about striking off the name of the company please forward the application with your comments about rejection of the application to the Regional Director. Please also inform the applicant of the fact that he can file a written reply if  he so desires to the objections to the Regional Directors under intimation to the Registrar. List of companies struck off should be published in the Official Gazette once in a month.

 

9.       The applications received in the offices of the Registrar must be expeditiously processed and for this purpose he should form a select team under supervision of an Officer and dedicate a computer exclusively to process these applications.

 

10.     A daily report about the number of applications received, the lump sum amount deposited by the applicants and number of applications approved and order passed for striking off should be sent to the Department and the Regional Director for information in his monthly D.O to the Secretary.

 

The receipt of the Circular may be acknowledged immediately.

 

Yours faithfully,

 

 

 

( R.N. Vaswani)

Under Secretary to the Government of India


                                                 No. DCA/E/W/N/S/

No. of the Company _________________

Name of the Company _______________

 

CHECK LIST FOR ENCLOSURES

(TO BE SUBMITTED AT THE TIME OF SUBMITTING THE APPLICATION UNDER SECTION 560 OF THE COMPANIES ACT).

 

1.

PAYMENT OF FEES ON DOCUMENTS

YES

NO

2.

BOARD RESOLUTION

YES

NO

3.

EVIDENCE OF IDENTITY/ RESIDENCE

YES

NO

4.

AUDITORS’ CERTIFICATE

YES

NO

5.

TWO AFFIDAVITS  ( I & II)

YES

NO

6.

CLEARNCE CERTIFICATE OF TAX DUES

YES

NO

 

 

 

 

 

APPLICANT’S SIGNATURE

DATE_______

PLACE_______

 

FAST TRACK I                                                                No.DCA/E/W/N/S/

 

 

APPLICATION FORM FOR STRIKING OF NAME OF COMPANY UNDER

SECTION 560  OF THE COMPANIES ACT, 1956

                                                                                                           

Affix

Photo

Stamp

Size

Affix

Photo

Stamp

Size

Affix

Photo

Stamp

Size

 

 

No. of Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of the Company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address of the Company:

 

To

 

The Registrar of Companies,

---------------

(Name of the State)

 

Sir,

 

            The  Company after carefully considering all aspects has duly resolved in the Board meeting held on___________ to make an application  for striking the name of our company off the Register u/s 560 of the Companies Act, 1956.

 

            Now, therefore, the undersigned request to take action to strike off the name of the company from the register.  We furnish the following details and documents for considering the application.

 

(i)            Proof of filing of all due Balance Sheets, Profit and Loss Accounts and

            Annual Returns. Passport No…………(if any).

 

(ii)     PAN allotted by the Income Tax Department.

 

 

 

 

 

 

 

(iii) Passport No………(if any).

 

 

 

 

 

 

 

 

 

 

 

 

(iv)              Stamp size Photographs of the applicant(s) Managing Director/whole time Director/ Secretary of the company.

(v)                Proof of the Permanent address of the applicant(s) (Ration Card/Voter Identity Card etc.). (Please Attach)

(vi)              Tax clearance certificate from Income Tax/Excise/Sales Tax  Department.(Please Attach)

(vii)             Two affidavits sworn before the Magistrate, stating that

(a)    the company is not doing any business and giving an undertaking that the directors of the company would be jointly and severally liable for any dues which may come to light after submission of the application u/s 560, and;

(b)   an undertaking that the company owes no tax or other dues to the Government.

 

(viii)           A certificate from the Statutory Auditors that the company is not doing any business (for period to be specified) and certify that the company has no other dues to Govt. or to the banks and financial institutions.

(ix)              A copy of the Board’s resolution authorising the Directors or Officers to make an application under Section 560 of the Companies Act, 1956.

 

 

Yours faithfully,

 

Signature, Names of directors and addresses

 

 

 

 

VERIFICATION

 

            It is hereby certified that the information given above are true to the best of my knowledge and belief.

 

Applicant’s signature, names, addresses

Place

 

 

 

 

 

 

 

Date

 

 

 

Seal:

 

 

Instructions to the Applicant

For Companies

 

1.                  This form should be filed in triplicate.

2.                  Cost of the application form is Rs.100/- payable in cash.

 

Instructions for ROCs.

 

(a)    Immediately on filing this form, the ROC should send a copy each to the RD and Income Tax/Sales Tax Department.

(b)   ROC will immediately cause to publish a notice in the Gazette u/s 560 of the Companies Act, 1956 calling for objections if any, within  seven days of receipt of objection(s) and place the matter before the Regional Director for his order(s).

(c)    Steps prescribed u/s 560 of the Companies Act, 1956 should be complied within the prescribed time limit.

(d)   ROC will take all necessary  action to dispose of  the application expeditiously.

 

No._____________

 

            Received the applications under Section 560 of the Companies Act, 1956,

 

 

 

Registrar of Companies

Official Seal

Dated :____________

Place :_____________
Ist AFFIDAVIT

 

On a Stamp Paper of Rs.10/-

 

AFFIDAVIT FOR ACTION U/S 560 OF THE COMPANIES ACT, 1956

 

            I/We,  ……………………. (Names, Father’s names and addresses) do solemnly affirm and state as follows;

 

1.         That I/we are the director/s of M/S. ……………. ,…..( Address)……,            (No. of Company ).           

 

2.                  That M/S. …… has not been doing any business since ………

 

3.                  That a resolution has been passed to take action to strike off the name of company u/s 560 of the Companies Act, 1956 in the meeting of Directors held on ………….

 

4.                  That an application is hereby filed for action u/s 560 of the Companies Act, 1956 before  the Registrar of Companies.

 

5.                  I/We, the director/s of the company above named, who has/have signed below hereby undertake jointly and severally to discharge any liabilities against the company which may come to light , subsequent to the filing of this affidavit.

 

 

DEPONENTS

 

Place:

Date:

 

 

           

 

MAGISTRATE

(with seal)


 

 

IInd AFFIDAVIT

 

On a Stamp Paper of Rs.10/-

 

AFFIDAVIT

 

 

 

            I/We,  ……………………. (Names, Father’s names and address) do solemnly affirm and state as follows;

 

1.                  That we are the directors of M/S. ……………. ,…..( Address)……,            (Company No).           

 

2.                  That the PAN allotted to the deponents by the Income Tax Authorities under the jurisdiction of ITO  ……(Name of district and address)………..  There are no tax or other dues payable by the company to the Income Tax, Sales Tax or other Government Departments or Banks or Financial Institutions.