Company's Name Restoration Granted, Timelines Set for Compliance & Penalties Imposed

The tribunal granted the company's application for restoration of its name in the Register of Companies, subject to filing pending documents and paying fines for non-compliance within specified timelines. The company was directed to submit all outstanding statutory documents within 45 days of restoration, with a penalty of Rs. 25,000 for each default year. The restoration order was limited to the specific violations leading to the name being struck off, allowing the ROC to pursue legal actions for any other offenses. Compliance with formalities would result in the issuance of an urgent certified copy of the order.

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Issues:
1. Restoration of name of struck off company in Register of Companies.

Analysis:
The case involved an application under Section 252(3) of the Companies Act, 2013 for the restoration of a company's name in the Register of Companies maintained by the ROC, Gwalior, Madhya Pradesh. The company was incorporated to carry out various business activities but failed to file Annual Returns and Financial Statements for the years 2016-17 and 2017-18, leading the ROC to strike off its name in 2019. The applicant contended that the non-filing was due to inadvertent mistakes, providing evidence of the company's continued operations, turnover, assets, liabilities, and regular transactions in its bank account. The ROC, in its report, recommended allowing the appeal subject to filing pending documents with additional fees.

The tribunal considered the submissions of the applicant and the ROC report, noting the company's failure to file returns for the relevant years. However, upon reviewing the Financial Statements for the year ending 31.03.2020, it was established that the company was actively engaged in trading operations with assets and liabilities. The tribunal acknowledged the company's intention to expand its business and increase its volume, leading to the decision to restore the company's name in the Register of Companies. The restoration was subject to the payment of costs for non-compliance with filing requirements, with specific directives for filing pending documents and paying fines within specified timelines.

The tribunal directed the company to file all pending statutory documents, including Annual Accounts and Annual Returns, within 45 days of the name restoration. The company's representative was tasked with ensuring compliance with the order, and a cost of Rs. 25,000 for each default year was imposed for revival. The company was permitted to deliver a certified copy of the order to the ROC, who would then publish it in the official Gazette. Importantly, the restoration order was limited to the violations leading to the name striking off and would not prevent the ROC from taking further legal actions for any other violations or offenses committed by the company. The tribunal disposed of the Company Appeal accordingly, allowing for the issuance of an urgent certified copy upon compliance with formalities.

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