Appeal granted to restore company name on Registrar of Companies register with fine imposed

The Tribunal allowed the appeal for restoration of the Appellant Company's name to the register of the Registrar of Companies, citing the company's involvement in operational activities despite past non-compliance. The decision required the Appellant to pay a fine of Rs. 2 lakh within 30 days to the Registrar of Companies for the restoration.

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Issues involved:
The judgment deals with the restoration of the name of an Appellant Company to the register of the Registrar of Companies, NCT of Delhi and Haryana, which was struck off due to default in statutory compliances.

Summary:

Issue 1: Striking off the name of the Appellant Company
The Registrar of Companies initiated proceedings under Section 248 of the Companies Act, 2013 and struck off the name of the Appellant Company due to default in filing financial statements and annual returns since 31.03.2014. The Tribunal observed discrepancies in the Appellant's financial records and noted that the company had not filed its financial statements since 2014.

Issue 2: Appeal against the order
The Appellant filed an appeal against the order of the National Company Law Tribunal, which declined the restoration of the company's name to the register. The Appellant argued that it was a subsidiary of another company under insolvency and was actively involved in a project called 'the Arena' as evidenced by collaboration agreements and financial transactions.

Issue 3: Legal provisions and considerations
The Tribunal considered Section 252 of the Companies Act, which provides for the restoration of a company's name if it is carrying on business or in operation. The Appellant cited previous tribunal decisions to support its case for restoration. The Respondent argued that the appeal lacked merit based on the findings of the Tribunal.

Judgment:
The Tribunal acknowledged the legal framework governing the removal and restoration of company names. Despite the Appellant's past non-compliance, the Tribunal found merit in restoring the company's name due to its involvement in the 'Arena' project and operational activities. The appeal was allowed, subject to the payment of a fine of Rs. 2 lakh within 30 days to the Registrar of Companies.

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