Tribunal Orders Restoration of Struck-Off Company Name: Compliance Required

The Tribunal granted the Application under Section 252 of the Companies Act, 2013 to restore the name of the struck-off company. The decision was based on the evidence presented by the Applicant, demonstrating the company's operational status before the strike-off. The Tribunal emphasized stakeholders' interests, employees, and revenue, directing the Registrar of Companies to change the company's status to "Active" upon fulfillment of statutory compliances within 30 days. Various conditions were imposed, including a revival cost, asset alienation restrictions, and compliance affidavits, highlighting the importance of meeting regulatory obligations for reinstatement and ongoing business operations.

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Issues:
Application under Section 252 of the Companies Act, 2013 to restore the name of a struck-off company.

Analysis:
The Application was filed by a shareholder seeking to restore the name of the company, which was struck off by the Registrar of Companies due to non-filing of financial statements and annual returns. The company, engaged in the business of handicrafts, faced challenges as key personnel responsible for filings had passed away, leading to non-compliance. The Applicant argued that the company remained operational, solvent, and generated revenue, providing evidence such as income tax returns, audited financials, bank statements, and GST returns to support their claim.

The Tribunal considered the evidence presented by the Applicant, including tax filings, bank statements showing transactions, and other financial documents, indicating the company's active status before the strike-off. Relying on Section 252 of the Companies Act, 2013, the Tribunal exercised discretion to restore the company's name, emphasizing the interests of stakeholders, employees, and revenue. The Tribunal issued directions for the Registrar of Companies to change the company's status to "Active," subject to the company fulfilling statutory compliances within 30 days of restoration.

Additionally, the Tribunal imposed a cost of Rs. 50,000 for revival, restricted alienation of assets until compliance, and clarified that directors disqualified under Section 164 would not be automatically reinstated. The company was required to submit an affidavit of compliance within two months and shareholders had to provide an undertaking regarding the use of accounts during demonetization. The Tribunal's order did not limit the Registrar's power to take action for late filings or non-compliance with the Companies Act, 2013.

In conclusion, the Tribunal allowed the Application on specified terms, emphasizing the need for compliance with statutory requirements, financial obligations, and regulatory directives to ensure the company's reinstatement and continued operations.

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