MCA Clarification on Applicability of Section 16(1)(a) of the Companies Act 2013 which prescribes ‘No Time Limitation’ vis-a-vis the ‘Time Barred’ cases under the Companies Act, 1956
The MCA has issued Clarification on Applicability of Section 16(1)(a) of the Companies Act 2013, which doesn’t prescribe any time limitation, vis-a-vis the time barred cases as per the corresponding provisions under Section 22(1)(ii)(b) of the Companies Act, 1956, as under:
A representation was received from Regional Director, Mumbai seeking clarification as to whether Regional Directors can entertain, fresh applications u/s 16 of the Companies Act, 2013 in respect of applications which were earlier rejected by them under Companies Act, 1956 on the ground of being time-barred as the prescribed period of twelve months had been completed (under Section 22(1)(ii)(b) of the Companies Act, 1956). It was expressed that Section 16 of the Companies Act, 2013 does not specify any time limitation.
2. The matter has been examined in consultation with D/O Legal Affairs and it is clarified that applications that were rejected by Regional Directors under Section 22(1)(ii)(b) of the Companies Act, 1956, on the ground that such applications were made after the requisite period of twelve months specified therein, cannot apply afresh under Section 16(1)(a) of the Companies Act, 2013, as the extinguished limitation cannot be considered to be revived even if no limitation period has been prescribed/ laid down in the said section.