Company Name Restoration Granted Despite Tax Non-Payment & Compliance Issues

The National Company Law Tribunal ruled in favor of restoring the name of a struck-off company, M/s. Rajlaxmi Promoters P. Ltd., despite non-payment of Income-tax dues and statutory non-compliances. The Tribunal considered the company's non-operation, pending tax proceedings, and the need to protect revenue interests. The Registrar of Companies was directed to restore the company's name, change its status to "active," and assist in resolving the outstanding tax issues.

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Issues:
1. Application under section 252(3) of the Companies Act, 2013 for restoration of a struck-off company.
2. Non-payment of Income-tax dues by the struck-off company.
3. Registrar of Companies' decision to strike off the company due to statutory non-compliances.
4. Consideration of restoring the company's name in the register by the National Company Law Tribunal.

Analysis:
1. The application was filed under section 252(3) of the Companies Act, 2013, seeking to restore the name of a struck-off company, M/s. Rajlaxmi Promoters P. Ltd., by the Income-tax Officer. The company was struck off due to defaults in filing statutory returns since 2012, and the Registrar of Companies initiated proceedings under section 248(5) for striking off the name.

2. The application highlighted that the struck-off company had outstanding Income-tax dues for multiple assessment years, and recovery proceedings were pending against them. The petitioner argued that if the company remained struck off, it would be challenging to recover the dues, emphasizing serious violations of the Income-tax Act.

3. The Registrar of Companies justified the strike-off by stating that the company failed to file statutory returns and did not respond to notices. They published notices in the Official Gazette regarding the strike-off and dissolved the company. The Registrar did not object to restoring the company's name but left the decision to the Tribunal based on the case's merits.

4. The Tribunal considered the facts, including the company's non-operation during the relevant period and the pending Income-tax proceedings. Despite no evidence of the company conducting business, the Tribunal ruled in favor of restoration to protect the revenue's interest. The order directed the Registrar to restore the company's name, change its status to "active," and cooperate with authorities for pending tax issues.

This detailed analysis covers the issues raised in the legal judgment, providing a comprehensive overview of the case and the Tribunal's decision regarding the restoration of the struck-off company's name in the register.

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