2020 (8) TMI 646 - AT - Companies Law

Appellate Tribunal Revives Company Name after Compliance Efforts

TWEAK THE FUTURE INNOVATIONS PRIVATE LIMITED Versus REGISTRAR OF COMPANIES, PUNJAB & CHANDIGARH

TWEAK THE FUTURE INNOVATIONS PRIVATE LIMITED Versus REGISTRAR OF COMPANIES, PUNJAB & CHANDIGARH - TMI Issues involved:1. Appeal for revival of the Appellant Company under section 252 of the Companies Act, 2013 against the impugned order of the National Company Law Tribunal (NCLT).2. Compliance with statutory requirements by the Appellant Company.3. Determination of whether the Appellant Company was carrying on business or operation at the time of striking off its name from the register of companies.4. Restoration of the name of the Appellant Company in the register of companies.Detailed analysis:1. The appeal was filed under Section 421(1) of the Companies Act, 2013, seeking revival of the Appellant Company after the NCLT dismissed the initial appeal for revival. The Appellant Company, engaged in software development, faced issues regarding non-filing of financial statements and annual returns for three consecutive years. The Appellant contended that it was operational and had filed necessary documents, including income tax returns, albeit with delays.2. The Appellant Company, a closely held entity with two shareholders and directors, had an authorized share capital of Rs. 5,00,000 divided into 50,000 equity shares. Despite delays in filing statutory returns, the Appellant demonstrated continued business activities through MOUs with international entities and invoicing for services provided.3. The Respondent Registrar of Companies argued that the Appellant failed to show ongoing business operations at the time of striking off the company's name. However, the Appellant's submissions, including operational MOUs and delayed but paid filings, indicated active business pursuits. The Appellate Tribunal highlighted the importance of the Appellant's operational status and the efforts made to comply with statutory requirements.4. In its decision, the Appellate Tribunal set aside the NCLT's order and directed the Registrar of Companies to restore the name of the Appellant Company in the register. The Tribunal emphasized the Appellant's operational activities, professional directorship, and efforts to enter new markets as positive indicators of business continuity. Additionally, the Appellant was instructed to pay a specified cost for not filing statutory documents promptly.This detailed analysis outlines the key legal and factual aspects of the judgment, focusing on the Appellant's efforts to revive the company and the Registrar's compliance concerns, ultimately resulting in the restoration of the company's name in the register of companies.