NCLT Chennai Allows Replacement of Financial Statements under Companies Act, 2013

The National Company Law Tribunal in Chennai addressed the failure of authorities to file objections and allowed the Petitioner to replace original financial statements with revised ones, utilizing powers under the Companies Act, 2013. Despite the lack of objections from the RD, ROC, and IT Authorities, the Tribunal granted approval for the replacement of financial statements, as requested by the Petitioner. This decision highlighted the importance of compliance with procedural requirements and the Tribunal's authority to address such non-compliance effectively.

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Issues involved:
1. Failure of RD, ROC, and IT Authorities to file objections.
2. Replacement of original financial statements with revised financial statements.

Issue 1: Failure of RD, ROC, and IT Authorities to file objections

The Tribunal noted that despite being directed to file objections, the RD, ROC, and IT Authorities failed to do so. The Counsel for the IT Department specifically did not file objections even after a conditional order stating that the right to file objections would be forfeited. The conduct of the authorities indicated a lack of interest in filing objections, leading to the forfeiture of their right to do so. The Tribunal considered this non-compliance in its decision.

Issue 2: Replacement of original financial statements with revised financial statements

After considering the facts, circumstances of the case, and submissions made by the Counsel for the Petitioner, the Tribunal invoked its powers under Section 131 of the Companies Act, 2013. It permitted the Petitioner to replace the original financial statements filed with the revised financial statements for the year ending 31.03.2016. The approval was granted for the revised financial statements attached in Annexure-11, which had been approved by the Board of Directors of the Petitioner Company at a meeting on 15.12.2017. Consequently, the Application for replacement was disposed of by the Tribunal.

This judgment by the National Company Law Tribunal, Chennai, addressed the failure of authorities to file objections and allowed the Petitioner to replace original financial statements with revised ones, exercising powers under the Companies Act, 2013.

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