Court reduces costs under Companies Act due to COVID-19 death, orders Petitioner to pay Rs. 50,000.

The Court modified the impugned orders by reducing the costs imposed on the Petitioner for delay in filing charge particulars under the Companies Act, 2013. The Court considered the genuine reason for the delay, the founder/director's death due to COVID-19, and reduced the costs to Rs. 50,000 in total. The Petitioner was directed to deposit the reduced costs within four weeks.

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Issues:
The judgment challenges two impugned orders passed by the ROC imposing costs on the Petitioner for delay in filing particulars of the charge under Sections 77(1) and 87 of the Companies Act, 2013.

Details:
The Petitioner, a company, had obtained loans from ICICI Bank, repaid them, and filed charges with the ROC. Due to the death of the founder/director, there was a delay in filing the required form, resulting in costs imposed by the ROC.

The Petitioner's counsel argued that the delay was not deliberate, given the unforeseen circumstances of the founder/director's death. They cited Supreme Court and Madhya Pradesh High Court orders where costs were reduced under similar circumstances.

The Respondent-ROC contended that the delay was admitted, justifying the imposition of costs on both charges.

The Court referred to relevant provisions of the Companies Act, highlighting the obligation on companies to report satisfaction of charges within 30 days. It also mentioned Section 87, granting power to the Central Government to extend filing time under certain conditions.

Referring to the Supreme Court order excluding the period from March 2020 to February 2022 from limitation calculations, the Court noted that the limitation would have expired in March 2022, whereas the form was filed in November 2022, resulting in an eight-month delay.

Citing the Madhya Pradesh High Court case, the Court emphasized that delays due to genuine reasons should be considered, leading to a reduction in costs. Considering the founder-director's demise due to COVID-19 as a genuine cause, the Court reduced the costs to Rs. 50,000 in total.

In conclusion, the Court disposed of the petition, modifying the impugned orders and directing the Petitioner to deposit the reduced costs within four weeks.

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