2021 (6) TMI 187 - Tri - Companies Law

Restoration of name of the Company in the Register of Companies - Section 252 of the Companies Act, 2013 - HELD THAT - The reasons shown by the Applicant for restoration of the name of the Company in the register of companies maintained by the Respondent. Admittedly, the relevant documents which are to be filed, are ready with the Company and the Company is willing to file the same, if so permitted - The Company has not deposited heavy cash in its Bank Account during the period of demonetization. Copy of Bank statement along with demonetization affidavit is enclosed to the Application. We are satisfied with the reasons shown by the Applicant for restoration of the name of the Company in the register of companies maintained by the Respondent. The Registrar of Companies, the respondent herein, is ordered to restore the original status of the Company as if the name of the company has not been struck off from the Register of Companies and take all consequential actions - Application allowed.

Summary

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

Detailed Analysis:

Restoration Application by the Applicant:
The Applicant, a Director & shareholder of the Company, filed an Application seeking directions to restore the Company's name in the Register of Companies. The Company had failed to file financial statements and Annual returns from 2011-12 to 2018-19, despite being regular in conducting Annual General Meetings and continuing its operations. The Applicant expressed willingness to file pending documents once the name is restored, attributing the lapses to oversight and unintentional actions.

Respondent's Submissions:
The Registrar of Companies reported that the Company had defaulted in filings, leading to strike off and freezing of Director Identification Numbers (DINs). The Respondent denied the Applicant's claim of the Company being in operation, stating zero revenue from operations and non-filing of Income Tax Returns due to strike off status. The Respondent emphasized the need for supporting documents before considering the Application.

Tribunal Findings and Decision:
After hearing both parties, the Tribunal acknowledged the Company's readiness to comply with pending statutory requirements upon restoration. Noting the Applicant's reasons and assurance, the Tribunal invoked its powers under Section 252 of the Companies Act, 2013, and ordered the restoration of the Company. The Tribunal directed the Registrar to restore the Company's status, activate DINs, and defreeze accounts, subject to compliance with specified conditions within 30 days. A cost of ?2,00,000 was imposed for revival, emphasizing that this order pertained to specific violations leading to strike off, without limiting the Registrar's authority to address other offenses in accordance with the law.

This comprehensive analysis of the judgment highlights the key aspects of the restoration Application, submissions by both parties, Tribunal's findings, and the detailed directives issued for the restoration of the Company's name in the Register of Companies.