Rajasthan High Court to hear PIL demanding extension of CFSS, 2020 amid Social Media Campaigning

The Rajasthan High Court will preside over the Public Interest Litigation (PIL), which sought the extension of the Companies Fresh Start Scheme, 2020 (CFSS).

The petitioner, Centre for Social Work and Research Foundation Management has filed the PIL stating that due to the Global Pandemic situation caused by COVID-19 and lockdown imposed in relation thereto, the Respondent authorities in the public interest, pursuant to the powers vested come up with the Companies Fresh Start Scheme, 2020 vide general circular dated 30.03.2020 to give the opportunity to the defaulting companies and enable them to file the belated documents in the MCA-21 registry.

The scheme came into force on 01.04.2020 and shall remain in force till 30.09.2020. The petitioner has urged that while the country has been unlocked gradually, the spread and severity of the Coronavirus has not been reduced and the peak was witnessed in the month of September 2020. Amidst this, several restrictions are still in place in various States and movement is still restricted. Commuting via public buses and/or other public transport is restricted and not fully operational.

The numbers of reported cases of COVID-19 are still increasing and there is a fear among the people of getting infected due to which they prefer not traveling at all or restrict it to the vicinity of their homes for their necessity.

The petitions stated that several representations and requests have been filed by various associations including the petitioner whose members comprises of Company Secretaries Advocates, Tax Practitioners, highlighting the grievances and reasons for taking a sympathetic view of extending the date, however, the Respondents, have till date, not responded to any of the representations filed with them which have aggravated confusion and chaos.

Therefore, the PIL sought the direction to decide the representation of the petitioners and other association extending the extension of Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme 2020 and to direct the Ministry of Corporate Affairs to extend the due date of Companies Fresh Start Scheme i.e. CFSS 2020 and LLP Settlement Scheme 2020 till March 31, 2021.