Restoration of struck-off company name allowed where records showed ongoing business activity and only curable compliance defaults.

The NCLT applied section 252(3) of the Companies Act, 2013 and restored the struck-off company's name where records such as income computation statements, bank statements and audited financial particulars showed day-to-day transactions and continuing business activity. The failure to file annual returns and financial statements was treated as a curable compliance lapse rather than proof that the company was defunct, and refusal to restore was considered disproportionate on the facts. The application was allowed and the company's name was ordered to be restored in the register of companies.

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Issues: Whether the struck-off company's name should be restored in the register of companies under section 252(3) of the Companies Act, 2013.

Analysis: The company produced income computation statements, bank statements and audited financial particulars showing day-to-day transactions and business activity, which indicated that it was a functional going concern. The Tribunal treated the failure to file annual returns and financial statements as an oversight rather than a ground to refuse restoration, especially where the material on record showed continuing operations. On this basis, restoration was considered just and proper.

Conclusion: The struck-off company's name was ordered to be restored in the register of companies, and the application was allowed.

Ratio Decidendi: Restoration under section 252(3) is warranted where the evidence shows that the company was carrying on business and the default was a curable compliance lapse, making refusal to restore disproportionate.

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