Fast Track Exit guidelines of 2011 are still applicable. The general circular 36/2011 has neither been withdrawn nor suspended. Interestingly, Section 560 of the Companies Act, 1956 relating to strike-off continues to remain applicable as corresponding Section 441 of Companies Act, 2013 has not been notified.
Informatively, the Company Law Settlement Scheme 2014 (CLSS 2014) provides that any defaulting company after filing documents under the Scheme can opt for strike-off by paying only 25% of the applicable fee. It allows companies to file e-Form FTE for striking off its name. It follows that FTE guidelines remain applicable.
Prior to CLSS 2014, the defunct companies (defaulting companies) were permitted to file e-Form FTE without having to file pending forms. The RoC’s were allowing the application on this basis. Many corporates willing to get their name struck off wish to file e-Form FTE straightaway without doing any filing under CLSS 2014 as it gives them financial benefit.
A question has been raised whether e-Form FTE can be filed by the defaulting/defunct companies without opting for CLSS 2014. The answer is Yes as the guidelines for FTE are still applicable and the same modus operandi has to be adopted by RoC’s. Legally, it is possible unless FTE guidelines are either withdrawn or suspended for the time CLSS is in operation. Till the time it is done by MCA, the companies would do well to file for strike-off.
Read all this and much more in my latest publication – Handbook on Company Law Settlement Scheme 2014 available at http://www.amazon.in or at http://tranzission.com/book1.html.
Ashish Makhija: firstname.lastname@example.org
Disclaimer: The views expressed here are views based on my personal interpretation and should not be deemed as legal or professional advise on the subject. If relied upon, the author does not take any responsibility for any liability or non-compliance.