MCA planning to roll out e-hearings by March 2024

The government is setting the stage for virtual hearings via its MCA21 site, which will soon eliminate the need for corporate lawyers and executives to appear in person at company registrar offices for case hearings.

Based on the high number of return files this year, the Ministry of Corporate Affairs (MCA) plans to implement e-adjudication on its statute filing portal by March, according to two persons familiar with the matter. All actions taken by the registrars of companies (RoCs) regarding defaults and violations of company law will be handled fully online after it is introduced. Online hearings will be a part of that. This will be implemented before the conclusion of this financial year, according to one of the two individuals mentioned above, who both requested anonymity.

Currently, government authorities correspond with authorized business executives by actual letters. However, for speedier delivery, some proactive officials also email scanned versions of these letters. As it eliminates the need for travel for each case hearing, the new approach is anticipated to expedite the legal process.

The second official claims that even if virtual meetings are permitted by law, hearings are still primarily conducted in person because signing documents and recording statements are two of the many requirements for the procedures. Additionally, some corporate representatives like in-person meetings because they think they can make stronger presentations there. “The next obvious step toward providing public services online is e-adjudication. Increasing speed, transparency, and efficiency is the goal,” the second official said.

The aforementioned individuals stated that in order for the virtual adjudication system to withstand judicial scrutiny, concerns regarding the validity of electronic evidence gathered, communications sent, and declarations made are being addressed.

Following the MCA21 portal’s record-breaking volume of financial statements and annual return filings during the most recent filing season, which concluded in November, the government made the decision to move forward with e-adjudication. MCA data shows that up to November 29, 157 million financial statements and annual reports were filed this season, a 15% increase over the 1.37 million filed the previous year.

Experts predict that e-adjudication, which comes after the decriminalization of offences under the Companies Act, will be a significant turning point in India’s digitalization process.

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