Director's Appeal Dismissed: Company Struck Off for Inactivity

The Tribunal dismissed the application under Section 252(3) of the Companies Act, 2013 to revoke the order striking off the company's name. The appellant, a director and shareholder, failed to provide sufficient evidence to prove that the company was actively engaged in business activities during the default period. The Tribunal considered the lack of revenue generation, consistent losses, and absence of essential business documents as indicators that the company was not operating as claimed. As a result, the appeal was dismissed, and the Tribunal directed the provision of a free copy of the order to the appellant and the Registrar of Companies, Odisha.

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Issues:
Application under Section 252(3) of the Companies Act, 2013 to revoke the order striking off the company's name.

Analysis:
1. The company, a Private Limited Company, was incorporated with specific objectives, managed by two directors to carry out business activities related to land development, construction, and contracting.
2. The appellant, a director and shareholder, filed an application under Section 252(3) of the Companies Act, 2013, seeking to revoke the order of striking off the company's name by the Registrar of Companies, Odisha.
3. The Registrar of Companies struck off the company's name under Section 248(5) of the Companies Act, 2013, due to non-filing of statutory returns and lack of business operations, leading to the dissolution of the company.
4. The appellant presented evidence, including incorporation certificate, audited annual accounts, and PAN of the company, to support the claim that the company was a going concern carrying out business activities.
5. The Registrar of Companies, Odisha, defended the striking off stating non-filing of statutory returns and lack of response to show cause notice, leading to the publication of the strike-off notice in the Official Gazette.
6. The Tribunal examined the audited annual accounts provided by the appellant, showing no revenue generation, consistent losses, and lack of business transactions or employees during the defaulting years.
7. Lack of supporting documents such as bank account details, GST certificate, rent agreement, income tax returns, or sales invoices indicated the company was not actively engaged in business activities during the default period.
8. The Tribunal, considering the facts and evidence on record, dismissed the application under Section 252(3) of the Companies Act, 2013, leading to the appeal being dismissed accordingly.
9. The Tribunal directed the provision of a free copy of the order to the appellant, sent a copy to the Registrar of Companies, Odisha, and instructed the issuance of an urgent certified copy upon formalities' compliance.

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