Company's Name Restored After Appeal, Frozen Accounts Released, Costs Imposed

The appeal under Section 252 of the Companies Act, 2013 against the striking off of a company's name was allowed by the Tribunal. The company's name was restored in the Register of Companies with the condition of paying costs to the RoC and fulfilling outstanding requirements for the defaulting years. The frozen bank accounts were to be immediately released to enable the company to resume its business operations. The Tribunal emphasized the need for opportunities to rectify defaults and cited previous court decisions supporting restoration in cases with legitimate business operations.

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Issues:
- Appeal under Section 252 of the Companies Act, 2013 against the striking off of a company's name
- Compliance with statutory requirements by the company
- Grounds for seeking restoration of the company's name in the register
- Documents submitted by the Appellant to support the plea for restoration
- Consideration of the plea by the Tribunal
- Decision on the appeal and conditions imposed for restoration

Analysis:
1. The appeal was filed under Section 252 of the Companies Act, 2013 challenging the order of striking off the company's name by the Respondent. The Appellant contended that the company was actively engaged in business activities related to manufacturing and trading but failed to comply with certain statutory requirements due to the physical disability of a key director.

2. The Appellants, who were members and directors of the company, argued that despite the default in filing annual returns and financial statements, the omission was not deliberate. The main director of the company had become physically disabled, leading to non-compliance with the provisions of the Companies Act, 2013. The RoC, after receiving notice, expressed no objections to the restoration of the company subject to certain terms.

3. The Tribunal considered the plea of the Appellant and the representations of the RoC. The Appellant admitted the default but questioned the process followed by the RoC in striking off the company's name. The Appellant provided various documents, including financial statements, income tax returns, bank statements, and GST returns, to demonstrate the company's active business status and financial position.

4. After reviewing the documents and circumstances, the Tribunal found that the company had legitimate business operations that warranted the restoration of its name in the Register of Companies. The Tribunal criticized the RoC's assumption that the company was not operational solely based on non-filing of statutory returns, emphasizing the need for opportunities to rectify such defaults. The Tribunal cited previous court decisions to support the view that refusal of restoration should be in exceptional cases.

5. Consequently, the appeal was allowed with the condition of paying costs to the RoC and fulfilling all outstanding requirements for the defaulting years. The restoration would be subject to completing formalities and paying any applicable fees. The Tribunal directed the immediate release of the frozen bank accounts to enable the company to resume its business operations, with the RoC instructed to comply with the restoration order promptly.

6. The application was disposed of, and the parties were to be served with a copy of the order, marking the conclusion of the Tribunal's decision on the appeal.

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