Appellate Tribunal reinstates company name, criticizes Registrar's actions, orders compliance with restoration requirements.

The Appellate Tribunal allowed the appeal under Section 421 of the Companies Act, 2013, setting aside the National Company Law Tribunal's order and directing the restoration of the Appellant Company's name in the Register of Companies. The Tribunal found the Registrar's actions unsustainable in law, considering internal disputes, the company's assets, and circumstances. The Appellant was instructed to pay costs, file pending documents, and fulfill requirements for restoration, with the Registrar authorized to take further steps for non-compliance.

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Issues Involved:
Appeal under Section 421 of the Companies Act, 2013 for restoration of the name of the Appellant Company in the register maintained by the Registrar of Companies.

Detailed Analysis:

1. Background of the Appeal:
The Appellant filed an Appeal under Section 421 of the Companies Act, 2013, challenging the order passed by the National Company Law Tribunal (NCLT) dismissing the appeal for restoration of the company's name in the register maintained by the Registrar of Companies, NCT of Delhi and Haryana.

2. Facts Leading to the Appeal:
The Appellant company, incorporated in 1995, had been compliant with regulatory requirements, filed tax returns, and had audited accounts until 2008. Internal disputes among shareholders and management, along with actions by the Income Tax Department, led to non-filing of statutory records. The company's name was struck off the register, prompting the appeal for restoration.

3. Appellant's Arguments:
The Appellant contended that the Tribunal erred in dismissing the appeal, emphasizing that the company had an immovable property and could generate income. The Appellant argued that the Respondent's actions were unjust and violated the fundamental right to carry on trade, business, or profession under Article 19(1)(g) of the Constitution.

4. Respondent's Position:
The Respondent, Registrar of Companies, justified the strike-off citing non-filing of subsequent documents post-2008 and reasonable belief that the company was not operational. Notices were issued to the company and directors, providing opportunities to respond before striking off the name.

5. Judgment and Decision:
After reviewing the submissions, the Appellate Tribunal found the Tribunal's order and Registrar's actions unsustainable in law. Considering the internal disputes, the company's immovable property, and the circumstances, the Appellate Tribunal set aside the impugned order and directed the restoration of the company's name in the register.

6. Compliances for Restoration:
The Appellant Company was directed to pay costs to the Registrar of Companies, file all pending Annual Returns and Balance Sheets, and fulfill other charges/fees requirements. The Registrar was authorized to take further steps under the Companies Act for non-compliance.

7. Conclusion and Order:
The Appellate Tribunal allowed the Appeal, setting aside the Tribunal's order and restoring the company's name in the Register of Companies. Specific compliances and directions were issued for the restoration process. The Judgment was to be uploaded on the Tribunal's website and shared with the NCLT promptly.

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