Company restored after meeting statutory obligations under Companies Act, 2013

The National Company Law Appellate Tribunal allowed the appeal under Section 421 of the Companies Act, 2013, for the restoration of a struck-off company, M/s Supertech Projects and Construction Pvt Ltd. The Tribunal considered evidence of the company's operational activities during the relevant period, despite not earning profits, and imposed specified conditions for restoration, including filing overdue statutory returns and ensuring future compliance with statutory requirements. Compliance with these conditions led to the restoration of the company, highlighting the significance of meeting statutory obligations for reinstatement.

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Issues Involved:
- Appeal under Section 421 of the Companies Act, 2013 against NCLT's order rejecting restoration application for a struck-off company.
- Interpretation of Section 252(3) of the Companies Act, 2013 for restoration of a company.
- Examination of the company's operational status during the relevant period.
- Conditions imposed by ROC for restoration if allowed.
- Consideration of relevant documents and submissions for restoration decision.

Analysis:
1. Appeal Against NCLT's Order:
The appeal before the National Company Law Appellate Tribunal challenged the NCLT's order rejecting the application for restoration of a struck-off company, M/s Supertech Projects and Construction Pvt Ltd. The appellant contended that the company was operational despite not earning profits during the financial years ending 31.03.2017 to 31.03.2019.

2. Interpretation of Section 252(3) of the Companies Act, 2013:
The appellant argued that the company, as per its Memorandum of Association, was engaged in various business activities, including land development and lending money. Despite not being profitable, the company was operational, which, according to the appellant, justified restoration under Section 252(3) of the Act.

3. Examination of Operational Status:
The Tribunal examined the material on record and acknowledged that the company was indeed in operation to some extent during the relevant period, even though it was not generating revenue. The NCLT's observation that the company was not operational was disputed by the appellant, who provided documents supporting the company's operational activities.

4. Conditions for Restoration:
The ROC did not object to restoration but highlighted certain conditions, including filing overdue statutory returns, publishing notices, producing income tax returns and bank statements, and ensuring future compliance with statutory requirements. The Tribunal accepted these conditions and directed the petitioner to pay a specified cost for restoration.

5. Consideration of Documents and Submissions:
The Tribunal reviewed various documents presented by the appellant, such as incorporation certificates, financial statements, bank statements, and income tax returns. These documents, along with other evidence, demonstrated the company's operational status and financial activities during the relevant period, leading to the Tribunal's decision to allow the appeal and restore the company.

In conclusion, the National Company Law Appellate Tribunal allowed the appeal, subject to the specified conditions, for the restoration of the struck-off company based on the evidence of its operational activities during the relevant period, as provided by the appellant. The decision emphasized the importance of compliance with statutory requirements and future obligations for the restored company.

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