Tribunal overturns company's striking off, emphasizes rectifying defaults

The tribunal allowed the appeal against the striking off of the company's name under the Companies Act, 2013. The company successfully demonstrated that it had been conducting business operations despite the non-filing of necessary e-forms. The tribunal criticized the Registrar of Companies' decision and emphasized the need for opportunities to rectify such defaults. The company was required to pay costs for restoration, file outstanding documents, pay late fees, and complete formalities for restoration. The company's name would be restored in the register, and frozen bank accounts were to be immediately released for business operations to resume.

---

---

Issues:
Appeal against striking off company name under Companies Act, 2013.

Analysis:
1. The appeal was filed against an order striking off the name of the company by the Registrar of Companies (RoC) due to non-filing of necessary e-forms. The Appellants argued that the failure to file was unintentional and that the company had been active and compliant with the Companies Act, 2013. They claimed they did not receive any show cause notice before the action was taken.

2. The RoC justified the striking off, stating it was due to the company not conducting business for two consecutive financial years. The RoC requested the Appellant Company to prove it was carrying out business operations during that period.

3. The RoC filed an affidavit supporting the striking off decision. The tribunal directed the appellants to provide an undertaking regarding any pending dues to the Income Tax Department. The Appellants complied by submitting the undertaking to settle all pending tax demands.

4. After reviewing the documents provided by the Appellants, including financial statements, bank statements, income tax returns, and other relevant documents, the tribunal found that the company had been conducting business operations. The tribunal criticized the RoC's decision based solely on non-filing of statutory returns and emphasized the need for opportunities to rectify such defaults.

5. The tribunal allowed the appeal, subject to the payment of costs for restoration. The Appellant Company was required to file all outstanding documents for the defaulting years, pay any late fees, and complete all formalities for restoration. The company's name would be restored in the RoC register as if it had not been struck off. The Income Tax Department retained the right to take action against the company as per the law.

6. The tribunal also directed the immediate release of frozen bank accounts to enable the company to resume its business operations. The RoC was instructed to comply with the restoration order within one week of the Appellant's compliance.

7. The application was disposed of, and the parties were to be served with a copy of the order for compliance and information.

---