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2020 (12) TMI 842 - Tri - Companies Law


Issues Involved:
1. Restoration of the name of a company in the Register of Companies after being struck off by the Registrar.
2. Compliance with statutory provisions under the Companies Act, 2013 for restoration.
3. Consideration of the Company's activities and intentions for restoration.
4. Impact of the strike off on the company's operations, employees, shareholders, and creditors.

Issue 1: Restoration of the Company's Name
The case involved a Company Petition seeking restoration of the name of a company that was struck off by the Registrar of Companies due to non-filing of balance sheets and annual returns. The petitioner sought restoration under Section 252(3) of the Companies Act, 2013. The Registrar did not oppose the petition, stating that there were no investigations pending against the company. The Tribunal, after considering the facts and provisions of the Act, directed the Registrar to restore the company's name in the Register, along with the DINs of its directors.

Issue 2: Compliance with Statutory Provisions
The Tribunal emphasized the importance of complying with statutory requirements for restoration. The company was directed to file all necessary documents with prescribed fees within 30 days of restoration. Additionally, a cost of ?10,000 was imposed to be paid to the Ministry of Corporate Affairs. The company's representative was tasked with ensuring compliance with the order, and the Registrar was instructed to publish the order in the official Gazette after receiving a certified copy.

Issue 3: Company's Activities and Intentions
The petitioner argued that the non-filing of annual returns was unintentional and requested a sympathetic view for restoration. The company had been active, albeit unable to earn revenue due to initial setup activities. The Tribunal considered the company's potential to secure deals in the future and noted the properties owned by the company, emphasizing the restoration's importance for shareholders' interests.

Issue 4: Impact of Strike Off
The Tribunal acknowledged the adverse effects of the strike off on the company, its directors, shareholders, employees, and creditors. It highlighted the need for restoration to prevent irreversible losses and ensure the company's ability to operate normally. The restoration was deemed necessary to protect the rights of various stakeholders and allow the company to resume its business operations promptly.

This detailed analysis of the judgment provides insights into the legal considerations, factual background, and implications of the case concerning the restoration of a company's name in the Register of Companies.

 

 

 

 

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