Photo of Shikha Tandon

Partner Designate at the Delhi office of Cyril Amarchand Mangaldas. She is part of the dispute resolution practice with a special emphasis on corporate litigation, such as matters pertaining to Mergers and Amalgamations, Reduction of Capital and IBC litigation. Her other areas of work include, international commercial arbitrations, writs, civil and criminal litigation. She can be reached at shikha.tandon@cyrilshroff.com.

The provisions of the Companies Act, 2013 (the Act), and the rules framed thereunder, mandate companies to file requisite documents, including annual returns and financial statements, with the concerned Registrar of Companies (RoC) of their jurisdiction. Non-adherence to such provisions and non-filing of the requisite documents is an offence, exposing non-complaint companies and its directors to severe penal consequences, including fines and prosecution.

However, the records of the Ministry of Corporate Affairs (MCA) and the National Company Law Tribunals (NCLT) would clearly reveal that a lot of companies have been non-compliant with their filings. This non-compliance has been a menace to all the stakeholders involved, including, inter alia, (i) the companies and directors who have to face penal consequences for such non-compliances; (ii) the MCA and its administration who are engaged in the process of updating the records; (iii) the public/ shareholders who do not get access to the records of the companies; and (iv) the NCLT and the office of Regional Directors, which are burdened with compounding cases.


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