Appeal granted to restore company name struck off illegally under Companies Act, 2013

The Tribunal allowed the appeal, deeming the striking off of the company's name as illegal. The company's name was ordered to be restored to the Registrar of Companies upon filing pending documents with late fees and paying a sum to the Prime Minister's Relief Fund. The restoration was to be as if the name had not been struck off initially under Section 248(1) of the Companies Act, 2013. The petition was granted, and orders were issued to provide copies of the decision to the relevant parties.

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Issues:
Appeal against striking off company's name under Section 252 of Companies Act, 2013.

Analysis:
The appellant, a Private Limited Company, appealed against the striking off of its name by the Respondent under Section 248(1) of the Companies Act, 2013. The company was incorporated in 1995 with authorized share capital of Rs. 80,00,000 divided into 8,00,000 equity shares of Rs. 10 each. The issued, subscribed, and paid-up share capital was Rs. 71,17,700 divided into 7,11,770 equity shares of Rs. 10 each. The main objects of the company included discounting bills, advancing money on goods security, and receiving goods for sale on consignment basis. The Respondent struck off the company's name due to non-compliance with filing Financial Statements and Annual Returns for the years 2015-16 to 2017-18, indicating the business was not operational.

The appellant provided evidence of being operational, including audited financial statements, bank statements, and income tax returns for the relevant period. The Registrar of Companies (ROC) had no objection to restoring the company's name upon filing pending statutory documents with late fees. The Income Tax Department did not file a reply. The grounds under Section 252 of the Companies Act, 2013, required demonstrating that the company was in operation at the time of striking off its name, justifying restoration. The Tribunal had the discretion to restore the company's name if it was just to do so and in the interest of stakeholders.

Considering the evidence presented, the Tribunal allowed the appeal, declaring the striking off of the company's name as illegal. The restoration of the company's name to the Register of Registrar of Companies was ordered upon filing outstanding documents with proper fees, including late fees, and payment of Rs. 25,000 to the Prime Minister's Relief Fund. The company's name would stand restored as if it had not been struck off under Section 248(1) of the Companies Act, 2013. The petition was allowed and disposed of accordingly, with orders to serve copies of the order to the parties involved.

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