Company restoration for strike-off can be granted subject to compliance, outstanding filings, and costs

A company struck off for non-filing of statutory returns and balance sheets may be restored where the petition is within limitation, the company remains a running concern, and restoration serves the interests of justice. The court treated the section 560(6) remedy as preserving an opportunity for the company, its members and creditors to revive continued business, but noted that repeated non-compliance and presumed service of statutory notices reflected serious default by management. Restoration was made conditional on filing all outstanding statutory documents, payment of applicable fees, and payment of exemplary costs in addition to the Registrar's costs.

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Issues: Whether the petitioner company's name, struck off from the register of companies for non-filing of statutory returns and balance sheets, should be restored under section 560(6) of the Companies Act, 1956, and on what terms.

Analysis: The petition was filed within limitation and the company was shown to be a running concern. The Court noted that the statutory notices under section 560 had been presumed served, and that the absence of filings for several years reflected serious default on the part of management. At the same time, restoration was considered appropriate because the provision is intended to afford a company, its members, and creditors an opportunity to revive the company where continued functioning is possible and restoration is in the interests of justice. The Court also held that the company's casual approach to compliance justified imposition of exemplary costs in addition to the Registrar's costs, and that restoration would remain conditional upon filing all outstanding statutory documents and payment of applicable fees.

Conclusion: The petitioner's name was directed to be restored to the register of companies, subject to compliance with the required formalities and payment of costs.

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