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        2024 (7) TMI 1364 - HC - Companies Law

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        Company cannot be considered dead after compliance with NCLAT conditions, suit dismissal application lacks merit under Companies Act 2013 Sections 248, 250 Delhi HC permitted withdrawal of application by substituted legal representatives of deceased defendant to file written statement with liberty as prayed. ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Company cannot be considered dead after compliance with NCLAT conditions, suit dismissal application lacks merit under Companies Act 2013 Sections 248, 250

                            Delhi HC permitted withdrawal of application by substituted legal representatives of deceased defendant to file written statement with liberty as prayed. Court dismissed application seeking suit dismissal as infructuous under Companies Act 2013 Sections 248, 250 and Order XXII Rule 8 CPC. Court held company was made active for filing annual returns, NCLAT conditions were complied with, and company could not be considered dead with suit abated. Application lacked merit.




                            Issues:
                            1. Application for filing a Written Statement by substituted LRs of Defendant No. 3.
                            2. Application seeking dismissal of the Suit as infructuous under Companies Act, 2013 and CPC.
                            3. Dismissal of the application under Order XXII Rule 8 CPC due to non-compliance by the plaintiff.

                            Issue 1: Application for Written Statement by LRs of Defendant No. 3
                            The application was filed by the substituted LRs of Defendant No. 3 to file a Written Statement, objected by the plaintiff citing a new defense being introduced. The LRs claimed discovering a fraud committed on the Defendants. Eventually, the application was withdrawn with permission to file a fresh amendment application.

                            Issue 2: Application seeking dismissal of the Suit
                            An application under Companies Act, 2013 and Order XXII Rule 8 CPC was filed by Defendant No. 1 to dismiss the Suit as infructuous. The plaintiff company's non-compliance with annual account filings raised concerns about its business operations. The NCLAT had directed the plaintiff to comply with various conditions for restoration, including depositing costs and filing annual returns. The plaintiff refuted the application's claims, asserting compliance with NCLAT's directions, including depositing costs and preparing annual returns.

                            Issue 3: Dismissal of the application under Order XXII Rule 8 CPC
                            The plaintiff contended that the application was mala fide, aiming to assert the company's non-existence post-striking off its name from ROC records. The plaintiff argued that it had fulfilled NCLAT's restoration conditions, including depositing costs and preparing annual returns. The NCLAT's conditions were found to be complied with, indicating the company's active status for filing annual returns. Consequently, the application was dismissed as without merit, and the Suit was not abated based on the compliance with NCLAT's directives.

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                            Topics

                            ActsIncome Tax
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