Company's Name Restored in Register with Compliance Conditions

The Tribunal granted the restoration of the Company's name in the Register of Companies, subject to fulfilling specified conditions and compliance with regulatory requirements to rectify past defaults and resume operations lawfully. The Registrar of Companies was directed to take necessary actions, including changing the company's status, seeking clarifications on discrepancies, and ensuring compliance with observations made. The Company was instructed to pay a cost of Rs. 2,00,000 for revival, file statutory documents, and ensure compliance within specified timelines. The restoration was contingent on the Company's adherence to all directives and did not preclude further action for any other violations committed.

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Issues:
1. Restoration of company name in the Register of Companies.

Analysis:
The Company Application was filed seeking restoration of the name of the Company in the Register of Companies maintained by the Registrar of Companies. The Applicant contended that the Company failed to file its Annual Returns and Financial Statements for the Financial Years from 2011-12 to 2018-19 due to inadvertence. The Applicant provided various documents justifying that the Company was operational, including Audited Financial Statements, Income Tax Returns, and an Affidavit confirming compliance during demonetization. The Respondent, Registrar of Companies, denied most averments and highlighted the company's default in filing necessary documents, leading to its strike off under Section 248(1) of the Companies Act, 2013.

The Respondent raised concerns about the mismatch in paid-up capital, lack of business activity evidenced by zero revenue, and incomplete submission of Bank Statements and Income Tax Returns. Additionally, the Respondent froze the DIN of Directors due to disqualification under Section 164(2) of the Act. The Tribunal considered Section 252(3) of the Companies Act, 2013, which allows restoration of a company's name if it was carrying on business or in operation at the time of strike off. After reviewing the evidence and submissions, the Tribunal found the Company to be a going concern with substantial assets and liabilities.

Consequently, the Tribunal ordered the restoration of the Company's name in the Register of Companies. The Registrar of Companies was directed to take necessary actions, including changing the company's status, seeking clarifications on paid-up capital discrepancies, business purpose post-restoration, submission of pending financial documents, and compliance with observations made. The Company was instructed to pay a cost of Rs. 2,00,000 for revival, file statutory documents, and ensure compliance within specified timelines. The restoration was subject to the Company's adherence to all directives and did not preclude further action for any other violations committed.

In conclusion, the Tribunal granted the restoration of the Company's name, subject to fulfilling specified conditions and compliance with regulatory requirements to rectify past defaults and resume operations lawfully.

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