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TMI Blog2010 (4) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... tion seeking restoration of the name of the company to the Register of Companies maintained by the Registrar of Companies has been moved under section 560(6) of the Companies Act, 1956. 2. A significant aspect that emerges in this case is the fact that the paid-up share capital of the company, whose restoration is sought, was only Rs. 400. The company had applied for having its name struck off under the Simplified Exit Scheme, 2003 as it did not have the requisite share capital in terms of section 3(3) of the Companies (Amendment) Act, 2000, which requires a minimum paid-up share capital of Rs. 1 lakh. Consequently, the name of the company was removed from the Register of Companies, by the respondent. 3. Admittedly, the amendment brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. In this context, section 3(3) of the Companies Act, 1956 states, category-cally, that every private company, existing on the commencement of the Companies (Amendment) Act, 2000 with a paid up capital of less than one lakh rupees, shall, within a period of two years from such commencement, enhance its paid-up capital to one lakh rupees. This is a statutory mandate. An option was available to the petitioner to avail of the same. Instead of doing so, the petitioner took the other course, which was to have its name struck off from the Register of Companies. The petitioner cannot be permitted to come to the Court after about 9 years to, in effect, be granted the same indulgence which was contemplated by the aforesaid section for a limited p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e just and proper that the name of the petitioner be restored to the Register. He states that it would also be equitable to do so. I do not agree. There can be no equitable consideration that flies in the face of a statute which creates an express bar for the incorporation or continuance of a company with a paid up share capital below the minimum prescribed by that Statute. Nor would it be, "otherwise just" that the company be restored, specially in view of the fact that the company itself applied to be struck off the register instead of increasing its share capital within the time permitted by the Statute, and since nothing further has been urged by counsel, such as the discovery of some properties or debtors or creditors of the company wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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