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My remark “Yehi upload karwa do” was just a casual joke expressing our common hope for a due-date extension and not a serious suggestion. If my words caused any confusion or concern, I truly regret the same.
Kindly request you to not take the matter personally or link it to me individually. There was absolutely no intent to offend, mislead or make any official claim.
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Dear Sisters and Brothers
A company cannot be held liable for a statutory default where compliance becomes objectively impossible due to non-functionality of the designated Government portal, fact it well know to all
Any penal action initiated in the above scenario is inherently flawed, as it is:
Where the regulatory framework mandates exclusive electronic filing and the Government-controlled portal itself is dysfunctional, imposition of penalties would amount to a violation of constitutional guarantees, specifically:
The settled legal maxim lex non cogit ad impossibilia establishes that the law does not compel the performance of an impossible act. This doctrine has been consistently recognised by Indian courts and regulators and operates as an implicit defence across regulatory statutes, including the Companies Act, 2013.
Section 403 inherently presupposes the availability of a functional electronic filing mechanism. Where the statutory portal is inaccessible or unstable, the legal trigger for default does not crystallise, as the failure arises from systemic incapacity rather than corporate non-compliance. Penal consequences under Section 403 cannot operate in a vacuum created by failure of State-provided infrastructure.
Section 460 empowers the Central Government or the Regional Director to condone delays where such delay is attributable to “inadvertence or other sufficient cause.” System-generated errors, portal downtime, validation failures, and upload restrictions squarely fall within the scope of “sufficient cause” recognised in regulatory practice.
Courts have consistently held that:
The Ministry of Corporate Affairs has repeatedly issued General Circulars extending due dates, waiving additional fees, and permitting re-filing without penalties. Such measures constitute a tacit acknowledgment of systemic fragility and reinforce the position that companies cannot be faulted for non-compliance during periods of portal instability.
From a governance and risk-management perspective, regulatory compliance
obligations must be assessed in conjunction with infrastructural feasibility.
Where the State mandates digital compliance, the State equally bears
responsibility for ensuring functional digital infrastructure; failure thereof
cannot be converted into corporate penal exposure.
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CS Mukesh Kanazariya
FCS, LL.B, B.Com,
IICA-MCA Certified Independent Director
Email: Mukeshkan...@gmail.com
Mobile: +91 99989 11190
शतहस्त समाहर सहस्रहस्त संकिर । Earn with 100 hands and donate with 1000s.
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