MCA to Drop 7,338 Pending Cases in Latest Drive
In the second phase of a special initiative to reduce litigation and provide greater ease of doing business, the ministry of corporate affairs (MCA) said on Friday that it has chosen to withdraw 7,338 prosecutions that were pending before various courts.
According to the ministry, the decision will lead to a 21.86% decrease in the number of pending prosecutions being pursued by the federal government. The government had withdrawn 14,247 prosecutions in the first round of the Special Arrears Clearance Operation in 2017.
In addition, it will “unclog the courts” while upholding a sound framework for corporate governance, it claimed. Additionally, it stated that the judgement is in line with the idea that “the central government should not be a compulsive litigant”.
A panel was established by the MCA to conduct a thorough examination of all the active legal cases. It has located long-pending prosecutions for withdrawable offences with compoundable defences.
The MCA was unequivocal in saying that prosecutions for significant non-compoundable offences like cheating, fraud, accepting deposits, pending charges, etc. had not been taken into account for withdrawal.
The government’s decision to decriminalise certain offences under the Companies Act of 2013 through the Companies (Amendment) Act, 2020, is reflected in the cases that are currently being withdrawn, according to the law.