Court grants restoration of company name after petitioner demonstrates positive business developments

The court granted the petitioner's prayer for restoration of the company's name to the register, pursuant to section 560(6) of the Companies Act, 1956. The petitioner, a former director, demonstrated positive developments including securing natural gas supply and acquiring land for a new plant, emphasizing business growth and job creation potential. The Registrar of Companies did not object to restoration, subject to statutory requirements. The court directed the petitioner to fulfill specified obligations, such as advertising the order and paying fees, ultimately allowing the restoration of the company's name.

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Issues:
Petition for restoration of a company under section 560(6) of the Companies Act, 1956.

Analysis:
1. The petitioner, a former director of a company, filed a petition seeking restoration of the company to the register of companies under section 560(6) of the Companies Act, 1956. The company, engaged in the cold storage business, faced viability issues due to the unavailability of low-pressure natural gas supply despite initial confirmation from ONGC. Consequently, the company had to cease operations, leading to its name being struck off the register by the Registrar of Companies as per section 560(5) of the Act.

2. Over time, there were positive developments regarding the availability of natural gas supply, with ONGC indicating willingness to allocate gas to the company. The petitioner also acquired land for setting up a new cold storage plant. These developments prompted the petitioner to seek restoration of the company's name to the register maintained by the Registrar of Companies, emphasizing the potential business and employment opportunities the new plant could bring.

3. The petitioner asserted that no creditors, secured or unsecured, existed at present, and there were no statutory creditors. Additionally, the petitioner had obtained approval from ONGC for gas supply and had purchased land for the new plant. It was argued that restoration of the company's name would benefit both the company and the public interest by facilitating business growth and job creation.

4. The Registrar of Companies expressed no objection to the restoration of the company's name, provided that the petitioner fulfilled all due statutory requirements, including filing necessary returns, paying fees, and complying with other formalities within the stipulated time frame. The petitioner agreed to adhere to these conditions as outlined by the Registrar of Companies in a letter dated 18-2-2008.

5. Considering the provisions of section 560(6) of the Companies Act, 1956, and the compliance with requirements specified by the Registrar of Companies, the court granted the prayer made by the petitioner in the petition. The petitioner was directed to fulfill certain obligations, including delivering a certified copy of the order, advertising the order in the state gazette and newspapers, depositing a specified sum with the Registrar of Companies, and paying counsel fees to the standing counsel representing the Registrar of Companies.

6. In conclusion, subject to the specified directions and observations, the court allowed the petition for the restoration of the company's name to the register maintained by the Registrar of Companies, acknowledging the positive developments and potential benefits associated with the revival of the cold storage business.

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