9911796707
|
Home
Issues:
Petition for restoration of company's name under section 247(6) of the Indian Companies Act based on alleged fraudulent removal by directors and pending civil suit against the company. Analysis: The petitioner filed a petition under section 247(6) of the Indian Companies Act seeking the restoration of the name of a company to the register of companies. The petitioner, a creditor of the company, claimed to have obtained a decree against the company a day before the publication of a notification for the removal of the company's name from the register. The petition impleaded the Registrar and the directors of the company as respondents. Allegations were made that the directors fraudulently maneuvered to have the company's name struck off the register, and the petitioner was unaware of these actions. It was also revealed that the entire share capital of the company was not called, which could satisfy the petitioner's decree. In response, one of the directors contended that the petitioner should have been aware of the gazette publications and that the company was defunct at the time of the decree. Reference was made to section 247(5) which maintains directors' liability despite the company's removal from the register. The petitioner's counsel argued that the company should be deemed to be in operation as it was contesting a suit before the Civil Judge when information was sought by the Registrar. Additionally, it was contended that even if the company was not in operation, it was just to restore its name to the register as it had not fulfilled all obligations and the share capital was not fully called. The court considered the provisions of section 247(6) which allow for restoration if the company was carrying on business or if it is deemed just to do so. It was noted that the company's operations, including defending a lawsuit, indicated it was in operation. The court also found it just to restore the company's name to the register as the petitioner had filed a suit for recovery, and the company had not taken steps to settle its liabilities. The conduct of the directors in not disclosing the pending suit to the Registrar was deemed questionable. Relying on legal precedents, the court concluded that restoration was warranted in this case. The court directed the Registrar to restore the company's name to the register and awarded costs to the petitioner. In conclusion, the court ordered the restoration of the company's name to the register of companies under section 247(6) of the Indian Companies Act based on the company's operations and the petitioner's pending suit, finding it just to do so.
|
