2022 (5) TMI 927 - Tri - Companies Law

Restoration of name of the Company in the Register of Companies - Section 252 of the Companies Act, 2013 - HELD THAT - After perusal of material document on record, the report of the Respondent and after going through the provisions of Section 252(3) of the Act, 2013, this Tribunal is of the view that the Applicant Company was in existence and it is a going concern and name of the Company is to be restored in the Register of Companies as maintained by the Respondent. The application is allowed.

Summary

Issues:
1. Restoration of company name in Register of Companies under Section 252 of Companies Act, 2013.

Analysis:
1. The Applicant, a former Director of a Company, filed a Company Application seeking restoration of the Company's name in the Register of Companies. The Company was struck off by the Registrar of Companies, Telangana, due to default in filing financial statements and annual returns.
2. The Applicant Company had not been in commercial operations due to operational and financial difficulties, leading to non-filing of statutory documents for multiple financial years. The Company had assets and liabilities but had not generated profits.
3. The Respondent initiated strike-off proceedings under Section 248(1) of the Act, and the Company was struck off after due notices and publications. The Applicant Company failed to file IT returns for several years.
4. The Applicant Company submitted various documents justifying its operational status, including balance sheets, annual reports, and bank statements for certain years. The Respondent required proof of business operations and pending IT returns.
5. The Tribunal found that the Applicant Company was a going concern and ordered the restoration of its name in the Register of Companies. The Company was directed to file all pending statutory documents and pay a cost of Rs. 80,000 for revival.
6. The restoration was subject to compliance with specified directions within 30 days, including informing bankers, filing necessary documents, and delivering a certified copy of the order to the Respondent. The Respondent was to publish the order in the Official Gazette after compliance.
7. The Tribunal clarified that the order was limited to the violations leading to the strike-off and would not prevent further legal actions for any other violations committed by the Applicant Company. The Company Appeal was disposed of accordingly.