2024 (8) TMI 478 - AT - Companies Law

Striking off the Appellant from the register of companies, which was purportedly taken under Section 248(1)(c) of Companies Act - HELD THAT - It is a well settled that Ld. NCLT is empowered to restore the company where it thinks it to be just and equitable to restore it i.e. it is fair and prudent from the commercial point of view to restore the same. Considering the assets and further that the appellant is inclined to shift its business from iron ore to crushing stone, it would be appropriate to restore the appellant and it is in the benefit to State Exchequer and would also aid employment generation. It is just and equitable to restore the name of the appellant company to the record of ROC - the impugned order set aside - appeal allowed.

Summary

Issues involved:
Challenge to strike off company from register of companies under Section 252(3) of Companies Act, 2013.

Detailed Analysis:
1. The appeal was filed to challenge the ROC's decision to strike off the company from the register of companies under Section 252(3) of the Companies Act, 2013.
2. The company, engaged in screening and crushing iron ore in Odisha, faced restrictions from the Department of Mines & Geology, impacting its business operations significantly.
3. Due to the restrictions, the company failed to file returns regularly, leading to the ROC's decision to strike off the company from the register.
4. The appellant argued that despite the restrictions, the company still held assets and was engaged in business activities, including owning land, iron ore stock, crushers, commercial vehicles, and having business transactions.
5. The appellant also generated income through renting equipment and engaging in buying and selling iron ore, with documented evidence presented to support these claims.
6. The company also had pending litigation and an employee, indicating ongoing business operations and commitments.
7. The appellant sought restoration based on its intention to shift business focus to stone crushing, with applications for necessary permissions and clearances in progress.
8. The Tribunal considered previous judgments where companies with substantial assets were restored despite non-filing of financial statements, emphasizing the importance of commercial viability in restoration decisions.
9. After reviewing the evidence and submissions, the Tribunal found it just and equitable to restore the company to the register of companies, subject to specified compliances.
10. The appellant was directed to pay costs, file annual returns and balance sheets, and adhere to statutory requirements within specified timelines for restoration.

This detailed analysis highlights the key arguments, evidence presented, legal considerations, and the Tribunal's decision regarding the challenge to strike off the company from the register of companies under Section 252(3) of the Companies Act, 2013.