Tribunal Restores Company Name under Companies Act with Conditions for Compliance and Undertaking The Tribunal granted the Application for restoration of a company's name struck off by the Registrar of Companies under Section 248 of the Companies Act, ...
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Tribunal Restores Company Name under Companies Act with Conditions for Compliance and Undertaking
The Tribunal granted the Application for restoration of a company's name struck off by the Registrar of Companies under Section 248 of the Companies Act, 2013. The Applicant, a shareholder, successfully argued for restoration based on evidence of ongoing business operations despite past non-compliance. The Tribunal imposed conditions, including filing pending returns, depositing funds, and ensuring compliance with statutory requirements. Shareholders were also required to submit an Undertaking regarding financial transactions during demonetization. The decision allowed for restoration while maintaining the Registrar's authority to address future non-compliance.
Issues: Application for restoration of a company's name struck off by the Registrar of Companies under Section 248 of the Companies Act, 2013.
Analysis: The Application was filed by a shareholder seeking to restore the name of the Company in the Register maintained by the Registrar of Companies (RoC). The Company, engaged in civil constructions and real estate development, failed to file financial statements and annual returns from 2013-2014, leading to its strike off. The Applicant argued that the Company remained active despite economic challenges, justifying restoration.
The Respondent objected, claiming the Application lacked the Applicant's signature and an accompanying Affidavit. However, the Tribunal found these objections baseless as the Application was duly signed and supported by an Affidavit. The Income Tax Department was notified, but no representation was made on their behalf.
Evidences presented by the Applicant included income tax returns, property documents, and financial statements. The Sale Deed of 2013 showed land acquisition, aligning with the Company's objectives. The Balance Sheet indicated active operations with significant inventories. Considering Section 252 of the Companies Act, 2013, the Tribunal had discretion to restore a struck-off Company's name if it demonstrated ongoing business operations.
The Tribunal granted the Application, subject to conditions. The Company was directed to file pending returns, deposit funds for statutory payments, refrain from asset disposal, and ensure compliance with director disqualification provisions. An affidavit of compliance was required within two months. Shareholders had to submit an Undertaking regarding financial transactions during demonetization. The Tribunal's decision did not limit the RoC's authority to take action for late filings or non-compliance in the future.
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