Restoration of struck-off company name granted where records showed continued business activity and prejudice from exclusion.

A struck-off company's name was restored to the register where the record showed it remained operational as a going concern, supported by audited financial statements, income tax returns, bank statements, assets, liabilities and business activity. Although the strike-off followed default in filing statutory returns and financial statements, the tribunal treated the company's continuing business and the prejudice to members and creditors as sufficient grounds for restoration. Restoration was directed subject to payment of costs and filing of all pending statutory returns.

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Issues: Whether the company's name, struck off from the register for non-filing of statutory returns, should be restored under the Companies Act, 2013.

Analysis: The company showed audited financial statements, income tax returns, bank statements, assets, liabilities, and business activity to indicate that it was functioning as a going concern. The striking off had been effected because of continued default in filing financial statements and annual returns, but the material on record supported the conclusion that the company was in operation and that restoration would avoid hardship to the company, its members, and creditors.

Conclusion: The company's name was directed to be restored in the register of companies, subject to payment of costs and filing of all pending statutory returns.

Final Conclusion: The petition succeeded and the company obtained restoration of its name with ancillary compliance directions.

Ratio Decidendi: Restoration under the company law remedy is justified where the record shows that the struck-off company was still carrying on business and its continued exclusion from the register would cause prejudice, despite prior statutory defaults.

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