Company name restored despite strike-off legality under Companies Act, 2013. Compliance with Fresh Start Scheme required.

The Tribunal granted the restoration of the Company's name under the Companies Act, 2013, despite the legality of the strike-off, considering the bona fide contentions of the Petitioner and the impact on stakeholders. The restoration was subject to specified conditions, including compliance with the Companies Fresh Start Scheme, 2020, within 30 days post-restoration. The decision aimed to balance legal requirements with practical considerations to facilitate the Company's operations, mitigate losses, and generate employment, emphasizing the interest of justice and stakeholder welfare.

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Issues:
1. Restoration of the name of the Company under Companies Act, 2013.
2. Compliance with Companies Fresh Start Scheme, 2020.
3. Consideration of financial implications and business operations post-restoration.

Issue 1: Restoration of the name of the Company under Companies Act, 2013

The case involved C.P. No. 98/BB/2020 filed seeking restoration of the Company's name under the Companies Act, 2013. The Petitioner, a Promoter Director of the Company, highlighted that non-filing of Annual Returns and Financial Statements was unintentional due to lack of professional guidance. The ROC had initiated proceedings to strike off the Company's name for non-compliance. The Petitioner emphasized the importance of restoring the Company's name to continue business operations and generate revenue. The ROC did not oppose the restoration but highlighted the costs involved. The Tribunal considered the bona fide contentions of the Petitioner and the impact of striking off the Company's name on stakeholders. Despite the legality of the strike-off, the Tribunal decided to restore the Company's name, subject to specified conditions.

Issue 2: Compliance with Companies Fresh Start Scheme, 2020

The Petitioner intended to avail the Companies Fresh Start Scheme, 2020 (CFSS-2020) to rectify filing defaults. The scheme aimed to facilitate companies in rectifying non-compliances and making a fresh start. The Petitioner's inability to access the Company's frozen bank accounts hindered compliance with statutory requirements. The Tribunal acknowledged the Petitioner's intention to rectify defaults under the scheme post-restoration. The restoration order included directions for the Company to file all statutory documents with prescribed fees within 30 days of restoration, ensuring compliance with the CFSS-2020.

Issue 3: Consideration of financial implications and business operations post-restoration

The Tribunal considered the financial implications of the Company's strike-off, noting the profit before tax and potential hardships for stakeholders. The Petitioner assured post-restoration compliance with annual filings and normal business operations. The Tribunal emphasized the interest of justice, ease of doing business, and the need to restore the Company's name to mitigate losses and generate employment. The restoration order included conditions such as payment of costs, personal compliance monitoring, and prompt resumption of business operations post-restoration. The Tribunal's decision aimed to balance legal requirements with practical considerations for the Company's benefit and stakeholder welfare.

This detailed analysis of the judgment addresses the issues of restoration of the Company's name, compliance with the Companies Fresh Start Scheme, 2020, and the financial and operational considerations post-restoration.

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