Company strike-off cannot stand where records show ongoing business activity; restoration ordered subject to compliance conditions.

Company strike-off under the Companies Act could not be sustained where balance sheets and income tax returns showed continuing assets and business-related activity, as those records negatived the conclusion that the company was not carrying on business or operations. On that basis, the refusal to interfere with the strike-off was found unsustainable and the company's name was ordered to be restored to the register, subject to payment of costs and filing of pending annual returns and balance sheets. The order also preserved the Registrar's power to take further lawful action for any other defaults under the Companies Act, 2013.

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Issues: Whether the company was liable to be struck off as a non-operational company under the statutory framework, and whether its name was liable to be restored to the register of companies.

Analysis: The record showed balance sheets and income tax returns indicating assets and business activity, which negatived the conclusion that the company was not carrying on business or operations. In such circumstances, the strike-off action and the Tribunal's refusal to interfere were found unsustainable. Restoration was directed with conditions for payment of costs and filing of pending annual returns and balance sheets, while preserving the Registrar's power to take further action for defaults under the Companies Act, 2013.

Conclusion: The strike-off was set aside and the company's name was ordered to be restored, in favour of the Appellant.

Final Conclusion: The appeal succeeded and the company was restored to the register, subject to compliance directions and without prejudice to any further lawful action by the Registrar.

Ratio Decidendi: Where company records disclose continuing assets and business-related activity, a strike-off premised on non-operation cannot be sustained, and restoration may be ordered subject to compliance conditions.

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