Company name restored in Register of Companies with conditions to comply with statutory requirements

The Tribunal allowed the application for restoration of the company's name in the Register of Companies, emphasizing compliance with statutory requirements. Restoration was granted with conditions including filing pending financial statements, paying costs, and complying with regulations. Failure to meet these conditions would nullify the restoration order. The decision aimed to protect the company's operations, directors, and shareholders while ensuring future compliance with the Companies Act, 2013.

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Issues Involved:
Application under Section 252 of the Companies Act, 2013 seeking restoration of company's name in the Register of Companies.

Analysis:

Issue 1: Restoration of Company's Name
The Applicant, a shareholder, filed an application seeking restoration of the company's name in the Register of Companies. The company failed to file annual returns and financial statements for the financial years 2018-2019, 2019-2020, and 2020-2021, resulting in its name being struck off. The Registrar of Companies issued notices for striking off and dissolution of the company. The Applicant provided audited financial statements and bank statements to prove the company's existence and requested restoration. The RoC submitted a report stating the company's non-compliance and recommended restoration with conditions. The Tribunal observed that the company's failure to file returns was not intentional, and restoration was crucial for its operations and directors' disqualification. The Tribunal allowed the application, setting aside the RoC's order and ordering restoration of the company's name.

Issue 2: Locus Standi of Applicant
The issue of locus standi arose as the application was filed by a director who did not hold shares in the company. However, the Applicant later submitted an authorization from a shareholder holding 90% shares, allowing the application to be filed. The Tribunal considered this authorization sufficient under Section 252 of the Companies Act, 2013, which allows a shareholder to file such applications. Consequently, the Tribunal ordered the restoration of the company's name in the Register of Companies.

Conclusion:
The Tribunal allowed the application for restoration of the company's name, emphasizing the importance of compliance with statutory requirements. The restoration was subject to fulfilling conditions, including filing pending financial statements, paying costs, and complying with regulations. Failure to meet these conditions would nullify the restoration order. The Tribunal's decision aimed to protect the company's operations, directors, and shareholders while ensuring future compliance with the Companies Act, 2013.

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