As per the Indian law, there is a certain time frame to submit all forms and applications to the Registrar of Companies (ROC). In case these applications are filed after the time specified under the law, an additional fee will be paid.
However, there are some forms or applications for which late filing is not permitted. For such forms, it is essential to opt for condonation of delay as per the Companies Act, 2013.
A court can grant condonation of delay as per the provisions of the Limitation Act, 1963, if it is proved that the delay was caused due to a rational reason under unavoidable circumstances. There are multiple ways in which this can be done, and every court must ascertain what grounds are acceptable to allow condonation. Often, most grounds emerge as an error in judgement, a lawyer’s mistake, or a misreading of the law.
Read on to find more information on the condonation of delay.
The term ‘condonation’ signifies that the offence (of avoiding the law of period as suggested by the Act) is impliedly rejected, and the case will continue to proceed as no offence has occurred.
The Limitation Act of 1963 administers the limitation period for a lawsuit. The act summarises the factors that can be considered for evaluating the applicable time limit. Condonation of delay is an exemption to the general rule, which indicates that a court may agree to accept a late appeal or application. Here, find the list of some of the major points on how a condonation of delay can be filed:
The Limitation Act of 1963 has a larger objective. It offers a time limit for the applicant to file an application, appeal, or suit before the court. In case the legislation is not passed with respect to limitations, it leads to an indefinite litigation process.
Also Read: Section 148 of Income Tax Act
In the Collector Land Acquisition v/s Mst Katiji case in 1987, the Supreme Court gave a verdict in favor of the latter. Mst Katiji recommended some principles that need to be adhered to while administering the doctrine on condonation of delay.
The following are some of the instances where condonation is granted.
There are some exceptions to the possibility of the notion of condonation of delay; check the details below:
Barring the case of an application under Order XXI of the Code of Civil Procedure, 1908, all the applications and appeals are covered by the doctrine.
There’s a specific time limit set forth in Schedule 1 of the Act. Here’s what it mentions:
The court holds the choice to forgive the delay, as well as allow the appeal to continue. Even if the right cause has been presented, the party is not authorised to delay condonation, as the decision is up to the court and has discretionary jurisdiction.
The subject of “sufficient cause” cannot be clearly defined and varies from case to case. The court can use discretion to ascertain what comprises adequate cause depending on the circumstances of each case.
The reason for non-appearance, stay of execution, and adjournment needs to be just and sufficient. Else, they will only serve to extend the litigation. While this principle is supposed to encourage the pursuit of justice, it cannot be used to reject justice. The sufficient cause should be interpreted profusely to achieve considerable justice.
Section 460 of the Companies Act permits forgiving a party’s application delay. Section 460(a) suggests that if an application is essential to be filed with the Central government and is not made so within the stipulated time, the Central government has the authority to excuse the delay if the reasons are rational and given in writing.
Section 460(b) of the Act states that if an application is required to be filed with the registrar of the company and is not filed within the allotted time, the Central government can forgive the failure.
The Income Tax 1961 facilitates the delay of an application lodged under the Act to be excused. It suggests that the Central Board of Direct Taxes (CBDT) can permit any income tax authority to accept a claim for a deduction, refund, exemption, or relief under the Income Tax Act after the time limit is crossed. The CBDT can authorise income tax officers to accept any application if it deems necessary to neglect hardship to the party.
Condonation of delay and the law of limitation are effective ways to resolve cases and warrant fair litigation quickly. The law of limitation, on the other hand, averts cases from being stretched and sets a timeline within which the case may be filed to seek remedy. Condonation of delay safeguards the principle of natural justice. It identifies that different parties have different problems, and the same trial or rules cannot be applied to them all.
Ans. To create a condonation of delay application, you need to visit the official site of the Indian Government and fill in the form as per stated guidelines.
Ans. The term condonation signifies that the offence (avoidance of the Act’s period law) is impliedly rejected, and the case will proceed as though no offence has occurred.
Ans. Circumstances where condonation is permitted include the presence of an illiterate party, delay caused due to pendency of the writ petition, or subsequent changes in the law.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Section 194IB||Section 44AA||Section 80E|
|Section 195||Section 80EEA||Section 80DD|
|Section 80CCC||Section 80GG||Section 80 G|
|Section 54F||Section 1941A||Section 10|
|Section 194Q||Section 192||Section 269SS|
|Section 80DDB||Section 44AD||Section 194C|
|Section 194A||Section 194H||Section 80D|
|Section 80C||Section 80C, 24(b), 80EE & 80EEA||Section 234A|
|Section 50C||Section 80C||Section 80EEA|
|Section 194B||Section 194J||Section 206C|
|Section 80CCG||Section 80 EEB||Section 24Q|
|Section 40b||Section 194C||Section 54EC|
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