Company Name Restoration Ordered Under Companies Act, 2013

The tribunal ordered the restoration of the 2nd Respondent Company's name in the Register of Companies under Section 252(3) of the Companies Act, 2013. The Applicant, a shareholder, successfully demonstrated compliance and good faith by submitting required documents. The tribunal found the company to be a going concern, emphasizing the importance of fulfilling statutory obligations. The restoration was granted with instructions for filing pending financial statements and annual returns, along with a cost of Rs. 25,000 to cover expenses. The Registrar of Companies was directed to publish the restoration in the Official Gazette within 30 days, effectively resolving the matter.

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Issues:
- Restoration of company name in register of companies under Section 252(3) of the Companies Act, 2013
- Restoration of original status of the company, directors, and stakeholders
- Publication of the tribunal's order in the official Gazette

Analysis:

Restoration of Company Name:
The Company Application sought restoration of the 2nd Respondent Company's name in the Register of Companies under Section 252(3) of the Companies Act, 2013. The Applicant, a shareholder, highlighted that the company was incorporated as a private limited company and had successfully completed residential construction projects. However, due to non-filing of financial statements and annual returns for nine years, the Registrar of Companies initiated action under Section 248, resulting in the company's name being struck off. The Applicant submitted financial statements, income tax returns, and a Demonetization Affidavit to demonstrate compliance and good faith. The Registrar of Companies raised objections regarding non-filing of financial statements, lack of business activities, and non-compliance with tax filings.

Restoration of Original Status:
The tribunal, after considering the pleadings and evidence, found that the company was a going concern and ordered the restoration of the company's name in the Register of Companies. The tribunal emphasized that refusal to restore the name would be excessive given the circumstances and directed the Applicant to file all pending financial statements and annual returns in compliance with the Companies Act, 2013. Additionally, the Applicant was instructed to pay a cost of Rs. 25,000 to cover expenses related to the restoration process. The tribunal's decision aimed to rectify the oversight on the part of the company and enable it to fulfill its statutory obligations in the future.

Publication in Official Gazette:
As part of the relief sought, the tribunal directed the 1st Respondent (Registrar of Companies) to restore the name of the 2nd Respondent Company in the Register of Companies. The Applicant was given 30 days to comply with the order and ensure the implementation of the restoration. The tribunal's decision effectively disposed of the Company Application, providing a comprehensive resolution to the issues raised regarding the company's status and compliance with regulatory requirements.

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