Restoration of struck-off company name may be allowed with compliance, but prolonged statutory default can attract exemplary costs.

Restoration of a company's name struck off for non-filing of statutory returns and balance-sheets under Section 560(6) of the Companies Act, 1956 is considered where the petition is filed within time and the company shows continued business activity. Restoration may be permitted on compliance with outstanding filing requirements and payment of fees. Prolonged default, however, may be treated as grossly casual management and a failure to meet statutory responsibilities, justifying the imposition of exemplary costs in addition to ordinary costs. The direction for restoration is thus linked to full compliance with formalities and cost payment.

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Issues: Whether the petitioner company's name, struck off the register 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 the period prescribed for restoration. The company showed material indicating continued business activity, and the Registrar did not oppose restoration, subject to filing of the outstanding statutory documents and payment of applicable fees. The Court found, however, that the prolonged non-compliance for nearly eight years reflected grossly casual management and a failure to discharge the primary responsibility of ensuring statutory filings. In view of the length of default and the need to mark the misconduct, the Court held that restoration should carry not only the usual costs but also exemplary costs.

Conclusion: The petitioner company's name was directed to be restored to the register under Section 560(6) of the Companies Act, 1956, subject to completion of all formalities and payment of costs.

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