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Condonation of delay provisions now extended to LLPs

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Megha Saraf, Manager | Corporate Law Division

megha@vinodkothari.com

Ministry of Corporate Affairs (“MCA”) vide its recent Notification[1] dated 30th January, 2020 has given a relaxation to all Limited Liability Partnerships (LLPs) by extending the scope of condoning the delay to them in filing applications/ documents to the Central Government/ Registrar. As per the powers conferred upon the Central Government under Section 67 of the Limited Liability Partnership Act, 2008 (“LLP Act”), Section 460 of the Companies Act, 2013 (“Act, 2013”) which provides for condonation of delay has now been extended to LLPs with effect from 30th January, 2020.

A brief of the amendment is provided below:

Existing scope of Section 460 of the Act, 2013

Section 460 of the Act, 2013 refers to condonation of delay of offences in certain cases which provides for the following:

  1. delay in filing application to the Central Government
  2. delay in filing any document to the Registrar

In the aforesaid cases, the Central Government may condone the delay after recording the reasons in writing. Accordingly, companies can file e-Form CG-1 accompanied by an application with the Registrar of Companies (RoC) in order to condone the delay that has happened.

Revised scope of Section 460 of the Act, 2013

MCA vide its recent Notification has now extended the provisions of Section 460 to LLPs which would mean that now LLPs also have the option of proceeding before the Central Government on account of any delay in filing an application/ document with the Central Government or Registrar respectively. In absence of any particular section providing for condonation of delay, LLPs may file such application for condonation in e-Form 22 with the Registrar.

It can be said that with such extension of the provisions, the LLPs may now have a chance to rectify and condone the offence committed by them instead of opting for compounding as provided under section 39 of the LLP Act.

[1] http://www.mca.gov.in/Ministry/pdf/NotificationLLP_31012020.pdf