Successful Appeal for Company Restoration under Companies Act 2013: Compliance Emphasized

The appeal under Section 252(3) of the Companies Act, 2013, seeking restoration of M/s. Jindal Nirman Private Limited in the Register of Companies was allowed. The Tribunal imposed a cost of Rs. 25,000 for each year of default, totaling Rs. 1,75,000, for restoration. The Registrar of Companies was directed to change the company's status from 'STRUCK OFF' to 'ACTIVE' and ensure compliance with pending filings within 30 days. The judgment highlighted the significance of statutory compliance and consequences of non-compliance, emphasizing timely restoration and adherence to regulatory requirements.

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Issues: Restoration of Company M/s. Jindal Nirman Private Limited in Register of Companies

Analysis:
1. Background and Contentions:
- The appeal was filed under Section 252(3) of the Companies Act, 2013 by a shareholder seeking restoration of M/s. Jindal Nirman Private Limited in the Register of Companies.
- The company was incorporated in 2008 with specific objectives related to real estate business.
- The company had 6 shareholders and a specific share capital structure.
- Non-compliance issues arose as the company failed to file Annual Financial Statements and Annual Returns for several years.

2. Reasons for Strike-off:
- The Registrar of Companies (ROC) struck off the company's name due to non-functioning and non-compliance with filing requirements, as per Section 248 of the Companies Act, 2013.
- The ROC issued notices, but no response was received, leading to the strike-off in 2017.

3. Arguments and Evidence:
- The appellant presented financial statements, bank statements, and income tax records to support the restoration claim.
- The company had significant investments in real estate properties and shares, indicating ongoing operations.

4. Judgment and Directions:
- The Tribunal noted the company's investments and the potential loss if struck off, but rejected the appellant's claim of ignorance regarding strike-off status.
- Imposed a cost of Rs. 25,000 for each year of default, totaling Rs. 1,75,000, to be paid for restoration.
- Directed ROC to restore the company's status, change from 'STRUCK OFF' to 'ACTIVE,' and ensure compliance with pending statutory filings within 30 days.
- Mandated the company's representative to oversee compliance and pay the restoration cost promptly.
- Ordered publication of the restoration order in the official Gazette and allowed ROC to take further legal actions for any other violations.

5. Conclusion:
- The appeal was allowed with specific directions for restoration and compliance within stipulated timelines and costs.
- The judgment emphasized the importance of statutory compliance and the consequences of non-compliance leading to strike-off.

6. Disposition:
- Appeal No. 778/ KB/ 2019 was disposed of, with provisions for urgent issuance of a certified copy upon compliance with formalities.

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