Restoration under Section 247(6): name restoration supported where contested proceedings and undisclosed liabilities justify equitable relief.

Restoration of a company name under Section 247(6) is appropriate where the company was contesting proceedings at the time of striking off and where ongoing steps relating to liabilities or unpaid calls demonstrate continuing operation or justify equitable relief. The analysis applies the principle that mere cessation of trading does not preclude restoration if actions on liabilities, pending suits, or uncalled share capital show the company remained operational for relevant purposes. On those grounds the article concludes restoration is supported and that the petitioner is awarded costs and counsel fee to be taxed.

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Issues: Whether the name of Kalyan Corporation Limited should be restored to the register under Section 247(6) of the Indian Companies Act.

Analysis: Section 247(6) permits restoration of a company's name if at the time of striking off it was carrying on business or in operation, or if otherwise it is just that the company be restored. The petition alleged (a) that the company was contesting a suit when the Registrar sought information and (b) that the directors failed to disclose the pending suit and did not discharge the company's obligations, including uncalled share capital sufficient to meet the petitioner's decree. Authorities indicate that mere cessation of business does not preclude a finding of operation where steps in relation to liabilities or winding up continue, and past obligations and unpaid calls may justify restoration. Applying these principles to the facts, restoration is supported both by the company's contesting of proceedings and by considerations of justice given the undisclosed pending suit and unpaid liabilities.

Conclusion: The name of Kalyan Corporation Limited is to be restored to the register under Section 247(6) of the Indian Companies Act; the petitioner is entitled to costs and counsel fee to be taxed at Rs. 25.

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