Firm Says It Couldn't File Online Forms Due To Errors In MCA Website; Kerala High Court Grants Interim Relief From Late Fee

The Kerala High Court on Wednesday directed the Ministry of Corporate Affairs (MCA) to accept Forms 3 and 4 filed by M/S Safa Jewels Areacode LLP, without insisting on the additional fee of Rs.37,500/-, for the delay in filing the same. 

Justice P.V. Kunhikrishnan passed the interim order in a plea filed by Safa Jewels LLP. The plea averred that the latter was unable to file the said forms due to the errors on the website of the MCA, which had not been resolved despite the petitioner submitting several complaints regarding the same. 

The petitioner herein had resolved to add 83 additional partners in order to increase the total obligation of contribution. 

As per Rules 21(2), 22(2), and 22(3) of the LLP Rules, 2009, such changes ought to be intimated to the MCA by filing forms 3 and 4 within 30 days of the resolution. Additionally, it is noted that from March 2022, the Forms under the LLP Rules ought to be filed through Version 3 of the MCA website. 

It is the case of the petitioner that when the petitioner's Company Secretary sought to file the said forms, he was unable to do so due to several errors in the website. The petitioner submitted that when the same was brought to the attention of the MCA through multiple complaints, the same were all closed by the latter, stating that the issue had been resolved. 

"But even after registering more than 6 complaints, the respondents are not able to resolve the issue, and hence the petitioner is not able to file annual return, and also, they have not granted any relaxation or extended the time for filing forms 3 and 4 without any additional penalty," the plea states. 

The petitioners alleged that in spite of the respondents being aware of the errors on the website, they were neither accepting physical forms or via email, nor were they extending the time to file the forms online. It was averred that the petitioner was finding it difficult to convince its own investors since the forms were not accepted and the changes were also not reflected in the master data of the LLP in the website. 

"Moreover, penalties for delay in filing forms are increasing day by day due to the fault of the respondents in not curing the defects in the website of the MCA," the petitioner pleaded, adding that they would thus have to pay a huge penalty due to the same. 

The plea filed by the petitioner has thus sought the issuance of a direction to the respondents to accept the forms 3 and 4 of the petitioner LLP through email or physical form without additional fees, as well as to make consequential changes in the master data of the petitioner so as to enable the latter to file annual returns in form 11. The plea has also sought a direction to be issued to the respondents to ensure proper functioning of Version 3 of the MCA portal, and to give reasonable time for filling forms 3 and 4 without considering the delay which has already occurred, and also not to take any coercive action against the petitioner until then. 

It is in this context that Justice Kunhikrishnan has directed the respondents to accept forms 3 and 4 of the petitioner within 10 days, without insisting upon payment of the additional fee. It was added that payment of the same would be decided when the writ petition was finally heard.

The Court further clarified that the respondents would be free to file file counter affidavit in this matter, and to also file an early posting petition, in case of any urgency. It directed the Registry to immediately post the present matter in case such petition had been filed. 

The petitioner is represented by Advocates Ebin Mathew, P.J. Mathew, Akhila Shoji, and Jaeona James. Central Government Counsel Jagadeesh Lakshman appeared on behalf of the respondent authorities. 

Case Title: M/S Safa Jewels Areacode LLP v. Union of India & Ors.

Click Here To Read/Download The Order