2020 (9) TMI 365 - Tri - Companies Law

Restoration of name of the company in the Register of Companies maintained by the Registrar of Companies, Mumbai - HELD THAT - On perusal of the Report of Registrar of Companies, Mumbai,Audited Accounts submitted by the Petitioner Company and the documents placed on record, the Bench has observed that company has Revenues from operation,Tangible Fixed Assets Current Assets its Books of Accounts.Therefore, it would be just, equitable and in the interest of justice to provide an opportunity to the company to rectify its defaults and continue the business. Petition allowed.

Summary

Issues:
1. Restoration of company's name in the Register of Companies.
2. Compliance with statutory requirements under the Companies Act, 2013.
3. Deactivation of Director Identification Numbers (DIN).
4. Financial statements and Annual Returns filing defaults.
5. Company's operational status and financial performance assessment.

Analysis:

1. The Company Petition was filed seeking relief against the Respondent Registrar of Companies for striking off the company's name from the Register of Companies due to defaults in statutory compliances. The Petitioner contended that the company was incorporated to carry out specific business activities related to textiles and had been functioning since its inception.

2. The Respondent Registrar initiated the process of striking off under section 248(5) of the Companies Act, 2013, citing non-compliance with filing financial statements and annual returns since incorporation, and the company's inactivity for the preceding two years. The Petitioner submitted audited accounts for subsequent financial years and income tax returns to demonstrate compliance.

3. The Petitioner highlighted that the deactivation of Director Identification Numbers (DIN) occurred due to the striking off of the company's name. The company acknowledged the inadvertent failure to file financial statements and annual returns for the relevant period.

4. The Tribunal noted the financial performance of the company for the fiscal years 2017-18 and 2018-19, indicating substantial revenue, expenses, fixed assets, and current assets. After considering the submissions, audited accounts, and Registrar's report, the Tribunal found it just and equitable to grant an opportunity for the company to rectify its defaults and continue its business operations.

5. Consequently, the Tribunal allowed the Company Petition, directing the restoration of the company's name in the Register of Companies subject to payment of specified costs and compliance with pending financial statements and annual returns filing within a stipulated period. Upon restoration, instructions were given for communication to bank authorities to defreeze the company's accounts, ensuring operational continuity post-compliance.

This detailed analysis encapsulates the legal judgment's essence, focusing on the issues raised, the arguments presented, and the Tribunal's decision regarding the restoration of the company's status and compliance with statutory requirements under the Companies Act, 2013.