Company name restored after proving financial activity; compliance required.

The National Company Law Tribunal, in a case concerning the revocation of a company's name struck off for non-compliance with statutory filing requirements, examined evidence of the company's financial activities and concluded that the company had been conducting business operations and fulfilling its financial obligations. Based on this evidence, the Tribunal directed the Registrar of Companies to restore the company's name in the register, changing its status from "strike off" to "active," subject to the company filing pending documents, paying specified costs, and ensuring future compliance with regulatory requirements.

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Issues:
1. Application under section 252(3) of the Companies Act, 2013 to revoke the notification striking off a company's name.
2. Compliance with statutory requirements for filing financial statements and annual returns.
3. Evidence of the company's business activities and going concern status.
4. Restoration of the company's name in the register by the National Company Law Tribunal.

Analysis:
1. The application was filed under section 252(3) of the Companies Act, 2013, seeking to revoke the notification issued by the Registrar of Companies striking off the name of the company due to default in filing statutory returns. The company, a private limited company, was struck off for not filing balance-sheets and annual returns since March 31, 2010, and was observed to not be conducting business operations.

2. The appellant contended that the company's accounts were prepared and audited on time, but there was negligence in monitoring the filing of statutory returns. The company generated revenues and profits in the years in question and presented evidence such as audited accounts, income tax returns, and bank statements to support its claim of compliance with financial obligations.

3. The Tribunal examined the financial records provided by the appellant, showing revenue, profits, fixed assets, long-term loans, and business expenses during the defaulting years. The company maintained a bank account with regular transactions, filed income tax returns, and demonstrated ongoing business activities, indicating it was a going concern at the time of striking off.

4. Considering the evidence and submissions, the Tribunal directed the Registrar of Companies to restore the company's name in the register, changing its status from "strike off" to "active." The company was instructed to file pending statutory documents within 30 days of restoration, pay a specified cost, and comply with all regulatory requirements. The restoration order was subject to the company's compliance and did not preclude further actions for any other violations committed.

This detailed analysis of the judgment highlights the legal grounds, evidence presented, and the Tribunal's decision to restore the company's name based on the proof of ongoing business activities and compliance with statutory obligations.

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