{"id":4237,"date":"2018-01-18T09:45:59","date_gmt":"2018-01-18T04:15:59","guid":{"rendered":"https:\/\/taxclick.org\/?p=4237"},"modified":"2018-01-18T09:46:55","modified_gmt":"2018-01-18T04:16:55","slug":"procedure-revival-restoration-struck-off-name-company-via-nclt-route","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/company-law\/procedure-revival-restoration-struck-off-name-company-via-nclt-route\/","title":{"rendered":"Procedure of Revival And Restoration Of Struck Off Name Of Company via NCLT Route"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong><u>OVERVIEW:<\/u><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">Over 1.62 lakh companies have not been carrying out business activities for long have been deregistered and a series of action against such shell companies have been taken, said the Minister of Finance, Mr. Arun Jaitely.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">Registrar of Companies (ROC), by the virtue of power conferred under Section 248, can\u00a0<strong>strike off<\/strong>\u00a0defunct and shell companies. There are companies which have not been doing their annual filings of their financials for couple of years or more. Such companies (which have not done their statutory filings) are therefore deemed (by RoC) not to be carrying on their business.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">These actions of government have caused a massive upheaval to the companies which were carrying on the bonafide business (but have not done their statutory filings). Though the ROC must have served notices as mandated under Section 248 on the registered email ids of the Companies before striking them off, but in many cases, there were complaints of not receiving any notice.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">However, to such aggrieved companies, the remedy lies in Section 252 of the Companies Act, 2013, which provides for restoration of name of the company.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong><u>CHARGING SECTION<\/u><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><u>As per Section 252 of Companies Act, 2013<\/u><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">Restoration of name of a Company struck off under section 248 can be done by following ways:<\/span>\n<ul>\n<li><span style=\"font-size: 14pt;\"><u>Filing an Appeal<\/u>: <strong>Any person <\/strong>aggrieved from the order of the Registrar (ROC) to strike-off the name of a company, can\u00a0<strong>file an appeal within a period of 3 years<\/strong>\u00a0from the date of order of the Registrar.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\"><u>Application to Tribunal<\/u>: If a\u00a0<strong>company <\/strong>or any\u00a0<strong>member<\/strong>\u00a0or\u00a0<strong>creditor<\/strong>\u00a0or\u00a0<strong>workman<\/strong>\u00a0has been aggrieved by the company\u2019s name struck off under section 248, it can\u00a0<strong>apply to the Tribunal<\/strong>\u00a0to restore the company\u2019s name, <strong>within a period of 20 years<\/strong>\u00a0from the date of publication of striking off notice in the official Gazette.<\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">The Tribunal, after submission of the application, shall give a reasonable opportunity of being heard to ROC, company and all the parties concerned and thereafter, pass an order that it deems fit.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong><u>IMPORTANT THINGS TO CONSIDER WHILE FILING APPLICATION WITH NCLT<\/u><\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">Application\/Appeal to the Tribunal (NCLT) having jurisdiction over the Registered office of the company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">There are in all 11 NCLT benches covering all the major locations in India.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Copy of appeal or application shall be served on ROC and other parties about restoration atleast 14 days before the date of hearing<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">There should be just causes for restoration of the company like it was carrying on the business and was in operation.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong><u>PENAL ACTIONS BY NCLT AGAINST COMPANIES<\/u><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">Merely filing of application for restoration of name doesn\u2019t guarantee that the appeal will be allowed by NCLT.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">Below mentioned are rare, yet significant orders, where NCLT has taken penal action against the applicants.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">In the matter of\u00a0<strong><u>M\/S Rainbow Real Estate Pvt. Ltd. V\/S Registrar of Companies<\/u><\/strong>, NCLT (Principal bench as on 02 June\u2019 2017) dismissed\u00a0 application filed by the applicant and imposed a penalty of Rs 20,000 on the ground of\u00a0 vexatious cause and unnecessarily dragging ROC before the Tribunal. In this case, the applicant had neither filed the income tax return nor any statutory filing was done by the company.<\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">In the matter of\u00a0<strong><u>M\/S International Security Printers Pvt. Ltd. V\/S Registrar of Companies (NCLT Delhi bench),\u00a0<\/u><\/strong>the applicant came across the fact that it was struck off. It was successfully demonstrated by the Applicant that the Company was doing bonafide business. NCLT allowed the appeal and ordered for restoration. In this case, though the application was not rejected but NCLT granted liberty to ROC to levy penalty on the company.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong><u>EFFECT UPON RESTORATION<\/u><\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">After restoration, all the statutory returns of the company shall be filed along with the applicable additional fee<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">According to the Section 252(3) The Tribunal may, by the order , give such other directions and make such provision as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off from the Register of Companies.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong>DETAILED PROCEDURE TO APPLY TO TRIBUNAL AS PER NATIONAL COMPANY LAW TRIBUNAL (AMENDMENT) RULES NOTIFIED BY MCA ON JULY 05, 2017\u00a0<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\"><strong>Appeal \/ Application<\/strong><\/span><\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">An appeal under section 252(1) and Section 252(3)\u00a0shall be filed before the Tribunal along with other information as per NCLT Rules, 2016.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">An application filed by the Registrar of Companies if he\u2019s of the opinion that the name of the company has been struck off on the basis of incorrect or inadvertent information, for restoration of name of a company in the register of companies.<\/span><\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\"><strong>Attachments with NCLT 9 shall be:<\/strong><\/span><\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">Copy of MOA and AOA of the Company;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">List of Directors of the Company;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">CTC of the order of Registrar for strike off;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Available signed Balance Sheets of the Company;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">CTC of Board Resolution passed by the company for making petition to NCLT to make<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">appeal against the order of Registrar;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Affidavit verifying petition;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Copy of bank draft evidencing payment of application fee;<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Memorandum of appearance.<\/span><\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\"><strong>Service of Appeal \/ Application<\/strong><\/span><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">A copy of the appeal or application shall be served by the company to the Registrar and on such other persons as the Tribunal may direct, not less than fourteen days before the date fixed for hearing of the appeal or application.<\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\"><strong>Passing of Order<\/strong><\/span><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">Upon hearing the appeal or the application or any adjourned hearing thereof, the Tribunal may pass appropriate order, as it deems fit.<\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-size: 14pt;\">Where the Tribunal makes an order restoring the name of a company in the register of companies, the order shall direct that-<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">The appellant or applicant shall deliver a certified copy to the Registrar of Companies within thirty days from the date of the order in INC 28;<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">On such delivery, the Registrar of Companies do, in his official name and seal, publish the order in the Official Gazette;<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">The appellant or applicant do pay to the Registrar of Companies his costs of, and occasioned by, the appeal or application, unless the Tribunal directs otherwise; and<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-size: 14pt;\">The company shall file pending financial statements and annual returns with the Registrar and comply with the requirements of the Companies Act, 2013 and rules made there under within such time as may be directed by the Tribunal.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>OVERVIEW: Over 1.62 lakh companies have not been carrying out business activities for long have been deregistered and a series of action against such shell companies have been taken, said the Minister of Finance, Mr. Arun Jaitely. Registrar of Companies (ROC), by the virtue of power conferred under Section 248, can\u00a0strike off\u00a0defunct and shell companies. &#8230; <a title=\"Procedure of Revival And Restoration Of Struck Off Name Of Company via NCLT Route\" class=\"read-more\" href=\"https:\/\/taxclick.org\/type\/company-law\/procedure-revival-restoration-struck-off-name-company-via-nclt-route\/\" aria-label=\"More on Procedure of Revival And Restoration Of Struck Off Name Of Company via NCLT Route\">Read more<\/a><\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - 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Saluja","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/taxclick.org\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d995dc2ca0427bcecc66d32d5ba92cd2?s=96&d=ANSPRESS_AVATAR_SRC&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d995dc2ca0427bcecc66d32d5ba92cd2?s=96&d=ANSPRESS_AVATAR_SRC&r=g","caption":"CS Mohit Saluja"},"description":"Author is practicing Company Secretary. He can be reached at Mohit Saluja &amp; Associates, 2nd Floor, Malhotra Complex, Sehdev Market, Jalandhar City, M- 9914558709, csmohitsaluja@gmail.com","url":"https:\/\/taxclick.org\/author\/cs-mohit-saluja\/"}]}},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"yarpp-thumbnail":false},"uagb_author_info":{"display_name":"CS Mohit Saluja","author_link":"https:\/\/taxclick.org\/author\/cs-mohit-saluja\/"},"uagb_comment_info":2,"uagb_excerpt":"OVERVIEW: Over 1.62 lakh companies have not been carrying out business activities for long have been deregistered and a series of action against such shell companies have been taken, said the Minister of Finance, Mr. Arun Jaitely. Registrar of Companies (ROC), by the virtue of power conferred under Section 248, can\u00a0strike off\u00a0defunct and shell companies.&hellip;","_links":{"self":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts\/4237"}],"collection":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/comments?post=4237"}],"version-history":[{"count":0,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts\/4237\/revisions"}],"wp:attachment":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/media?parent=4237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/categories?post=4237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/tags?post=4237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}