Tribunal grants partial appeal for company name restoration under specified conditions

The Tribunal partially allowed the appeal for restoration of the company's name in the ROC register. Despite the appeal being filed under the wrong section of the Companies Act, the Tribunal treated it under the correct section due to misquoting by the appellant. The application, though time-barred, was conditionally allowed in light of the Covid-19 lockdown and extension of limitation periods. The company's name would be restored upon the appellant fulfilling specified conditions within the set timeframe, including filing overdue returns, publishing a notice, paying a set amount to the Central Government, settling dues with the Income Tax Department, and meeting all statutory requirements. Compliance with these conditions was crucial for the restoration of the company's name.

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Issues:
Restoration of company's name in ROC register, Misquoting of relevant section under Companies Act, 2013, Applicability of Companies Fresh Start Scheme (CFSS-2020), Extension of limitation period due to Covid-19 lockdown.

Analysis:

The appellant, a shareholder of the company, filed an appeal seeking restoration of the company's name in the Register of the ROC after it was struck off for failure to file financial statements and annual returns. The company, active since its incorporation in 1978, faced challenges leading to non-compliance with statutory requirements, resulting in the ROC's action. The appeal also aimed to benefit from the Companies Fresh Start Scheme (CFSS-2020) to rectify overdue filings without additional fees.

The Tribunal noted that the appeal was filed under the wrong section of the Companies Act, as it should have been under section 252(1) instead of 252(3). However, citing a Supreme Court judgment, the Tribunal proceeded to treat the application under section 252(1) due to the misquoting of the section by the appellant. The application was time-barred as it was filed after three years from the date of strike off by the ROC in 2017.

Considering the Covid-19 lockdown and the subsequent extension of limitation periods by the Supreme Court, the Tribunal conditionally allowed the appeal. The company's name would be restored in the ROC register upon the appellant fulfilling certain conditions, including filing overdue statutory returns, publishing a notice, paying a specified amount to the Central Government, clearing dues with the Income Tax Department, and complying with all statutory requirements.

In conclusion, the Tribunal partially allowed the appeal, directing the Registrar of Companies, Ahmedabad, Gujarat, to restore the company's name in the register subject to the appellant meeting the specified conditions within the stipulated time frame. Compliance with the conditions outlined by the Tribunal was necessary for the restoration of the company's name in the ROC register.

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