Struck-off company's name restored in Register of Companies due to non-compliance

The Tribunal ordered the restoration of a struck-off company's name in the Register of Companies maintained by RoC, Ahmedabad, due to non-compliance with filing returns since 2011-12. The company was directed to pay costs and file pending documents within 45 days of restoration. The restoration was essential for the disposal of the company's assets, including land with a higher market value. The order specified the conditions for revival and did not preclude further legal actions by RoC for other violations.

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Issues: Restoration of struck off company's name under Section 252(3) of the Companies Act, 2013

Analysis:
1. Background: The company was incorporated to conduct the business of Sales of Cotton, Cotton Seeds, and Soft Cotton. However, it failed to file Annual Returns since the financial year 2011-12, leading the Registrar of Companies (RoC) to strike off its name on 21.06.2017 due to non-compliance with statutory formalities.

2. Applicant's Submission: The Applicant's representative contended that the company unintentionally missed filing returns but was operational and had assets and liabilities, including land with a market value higher than the book value. The representative requested restoration of the company's name in the Register of Companies maintained by RoC, Ahmedabad.

3. RoC's Report: RoC did not appear but submitted a report suggesting that the matter be decided based on the available facts before the Tribunal.

4. Tribunal's Decision: After considering the submissions and evidence, the Tribunal noted the company's failure to file returns since 2011-12 without a plausible explanation. Although the Applicant claimed non-receipt of notice under Section 248(1), the Tribunal observed that notice in Form STK-5 was published. The Tribunal acknowledged the company's assets, including land, and the necessity to revive the company for land disposal. Consequently, the Tribunal ordered the restoration of the company's name in the Register of Companies maintained by RoC, Ahmedabad, from the date of striking off, subject to the payment of costs.

5. Order Details: The Tribunal directed RoC to restore the company's status to 'Active' and instructed the Applicant to file all pending statutory documents within 45 days of restoration. The Applicant was required to pay a cost of Rs. 25,000 for each year of default. The Applicant had to deliver a certified copy of the order to RoC, who would publish it in the official Gazette. The order was specific to the violations leading to the striking off and did not prevent RoC from taking further legal actions for any other violations committed by the company.

6. Conclusion: The Company Appeal was disposed of accordingly, and an urgent certified copy of the order would be issued upon compliance with formalities.

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