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2021 (1) TMI 2 - Tri - Companies LawRestoration of the name of the Respondent Company in the Register of Companies maintained by the Registrar of Companies, Telangana - section 252 (3) of the Companies Act, 2013 - HELD THAT - The Annual Balance Sheets and Financial Statements have been submitted by the Applicants for the period from 2013-14 to 2018-2019. Further, the counsel for the Applicant has also submitted copies of Assets and Liabilities, Revenue figures, profit/loss figures for various years based on the Audited Financial Statements, from which it appears that the Company continued to do business during aforesaid period, but failed to file the Annual Returns with RoC under a wrong notion of the provisions of the Companies Act, 2013 - the provisions of Section 252(3) of the Act stipulate that this Tribunal may direct restoration of a 1st Respondent Company's name, if it is just and equitable to do so. In view of the averments made and evidence placed, refusal to restore will be an excessive penalty for the over-sight on the part of the 1st Respondent Company. The 2nd Respondent (RoC, Hyderabad) is directed to restore the name of 1st Respondent Company in the Register of Companies - application allowed.
Issues:
- Restoration of company name in the register of companies - Compliance with Companies Act, 2013 Restoration of Company Name: The case involved a Company Application seeking restoration of the name of a company in the Register of Companies. The applicant, a shareholder, requested to set aside the order striking off the company's name and restore it in the register. The company had failed to file Financial Statements and Annual Returns for several years, leading to the name being struck off by the Registrar of Companies. The applicant provided evidence of the company's operations and financial status during the relevant period, emphasizing that the failure to file returns was due to a misunderstanding of the law rather than intentional non-compliance. Compliance with Companies Act, 2013: The Tribunal considered the provisions of Section 252(3) of the Companies Act, 2013, which allow for the restoration of a company's name if deemed just and equitable. After reviewing the submissions and evidence, the Tribunal found that the refusal to restore the company's name would be an excessive penalty for the oversight in filing returns. Consequently, the Tribunal ordered the restoration of the company's name in the Register of Companies maintained by the Registrar of Companies, Hyderabad, Telangana. The applicant was directed to file all pending Financial Statements and Annual Returns, comply with the Act's provisions, and pay a specified cost to the Registrar of Companies for publication expenses. This comprehensive analysis of the judgment highlights the issues of restoration of the company name and compliance with the Companies Act, 2013, providing a detailed overview of the case and the Tribunal's decision.
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