Advocates are not allowed : Registrar of Companies

Advocates are not allowed: ROC

Hon’ble Delhi High Court is likely to decide the ongoing controversy between Advocates on the one part and Chartered Accounts, Company Secretary, and Cost Accountants on the other part on 21st February, 2011 after hearing a Public Interest Litigation (PIL). The Ministry of Corporate Affairs has already filed a reply affidavit in the said Public Interest Litigation (PIL) pending before the Court, which alleges that the Registrar of Companies (ROC) discriminates against lawyers by only allowing Chartered Accountants, Company Secretaries or Cost Accountants to certify electronic submission to the corporate registrar. Till 2006 Registrar of Companies (ROC) was accepting the incorporation documents and other information from companies in physical / manual forms. In that environment Advocates were serving their corporate clients on their own like other professional i.e. Chartered Accountants and Company Secretaries. Since the introduction of e-governance in the ROC, all the physical forms have been replaced with e-forms and their certification by at least one Chartered Accountant, Cost Accountant or Company Secretary has been made mandatory. Advocates have not been empowered to certify the e-forms hence they need to approach a Chartered Accountant, Company Secretary or Cost Accountant to get every form certified before submitting with ROC. Not only this, Ministry has alienated the advocates from the definition of practicing professionals. Being aggrieved by this discrepancy between Advocates on the one part and Chartered Accounts, Company Secretary, and Cost Accountants on the other part petitioner approached Delhi High Court who earlier issued a notice and gave one month’s time to the ministry to file a reply affidavit. The Petitioner’s Advocate Sandeep Sharma has contended that the use of technology should be for the upliftment and betterment of all the professions and not just for selected ones.

Representation to bar council of india

Date:18.02.2011
Representation to Bar Council Of India

Being aggrieved by the discrimination against themselves in certifications of e-forms notified under the Companies Act, 1956 and the Limited Liability Partnership Act, 2008 a representation on behalf of advocates has been given to The Bar Council of India, today. The representation has been signed by around forty advocates practicing in New Delhi. Earlier in 2010 same representation was given to Different State Bar Councils of India and the Coordination Committee, All bar association of Delhi. Through the aforesaid representation Chairman of Bar Council of India has been requested to look into the matter and raise the issue before the concerned ministries of central Government and take all other necessary steps to resolve the issue which has the impact of discrimination against Advocates and Law students of the country.

For ready reference the said representation has been reproduced as under:

“To:

The Chairman,
Bar Council of India,
New Delhi

From:
Under signed Advocates.

Sub: Discrimination against Advocates.
Ref: E-forms notified under the Companies Act, 1956 and the Limited Liability Partnership Act, 2008.

Sir,

We are writing to you on a matter which has been a source of concern to over one million advocates practicing across the country and lacs of students doing LL.B.

Needless to say that since the inception of concept of “body corporate”, advocates have been providing their valuable services to the corporate world and this field of law has separately been recognized as Corporate Law. Till year 2006 advocates were serving their corporate clients on their own. They were not required to approach any Chartered Accountant, Cost Accountant or Company Secretary.

With a view to implement e-governance in Registrar of Companies (ROC) the Ministry of Corporate Affairs (MCA) has notified over 80 e-forms under the abovesaid Acts which can be filed with ROC only after one of the practicing Chartered Accountant or Company Secretary or Cost Accountant certify them. Advocates have not been allowed to certify those e-forms. This has caused unnecessary restriction on the profession of the advocates.

We are sure you appreciate and share the Advocates’ and law students’ concern for the benefit and development of the legal profession. We request you to raise the issue before the concerned ministries of Central Government and take all other necessary steps to resolve the issue which has the impact of discrimination against Advocates.

We look forward for your response in this matter.

With warm regards.”