Tuesday, 31 October 2017

NCLT ALLOWED RESTORATION OF NAME OF THE COMPANY IN THE REGISTRAR OF THE COMPANIES- ORDER DATED 17 OCTOBER, 2017


PETITIONER: M/S GILL HEAVENS FAMES PVT. LTD.
RESPONDENT: REGISTRAR OF COMPANY (ROC), HARYANA & DELHI
ORDER DATED: 17/10/2017

BRIEF FACTS OF THE CASE:
The present petition has been filed under Section 252(3) of the companies Act, 2013 by M/s Gill Heavens Fames Pvt. Ltd. (Herein referred to as the “Petitioner Company”) with the National Company Law Tribunal (“NCLT”) praying for restoring its name in the Register of the companies maintained by the Registrar i.e., Registrar of Companies (Herein referred to as the “Respondent”).

The above company was incorporated in the year of 1997 with the Registrar of Companies, NCT of Delhi and Haryana, The Company inter-alia engaged in the business of dairy farming, stud farms, animals breeding including sheep, horses, rabbits, pigs, fisheries and dairy farm produce of all kinds, milk, cream butter, cheese, paltry eggs, fruits and vegetables condensed milk etc.
The Registrar suo-moto struck off the petitioner company after issuing notification under Section 560(5) in the official gazette. The reason behind strike off was that the company have not filed its statutory returns and other documents since its incorporation.

CONTENTION OF THE PETITIONER:
Petitioner contended that due steps have been taken in accordance with the statutory provisions before striking off the name of the petitioner company from their registrar. The action was initiated as the petitioner company did not file the Balance Sheet and Annual Return since incorporation which was in contravention of section 159/220 of the Companies Act, 1956, which compelled the Roc to believe that the petitioner company was not carrying on any business and not in operation.

Further, petitioner also contended that the notices issued u/s 560 are not readily traceable as the records of the ROC, NCT of Delhi & Haryana have been shifted to Indian institute of corporate affairs (IICA). 

The respondent also failed to prove that due steps were not taken in compliance of the mandatory provisions of the Sections 560(1), 560(2), 560(3) of the Companies Act, 1956, which are pre-requisite for striking off the name of a company from its registrar.

In the absence of any material to substantiate adherence to the mandatory provisions, the impugned action of the Respondent would be arbitrary, illegal and against the principals of natural justice.

Below are Judgements followed before the order was pronounced:

M/s Purushottamdass and Anr (Bulakidas Mohta Co. P. Ltd.) V. Registrar of Companies, Maharashtra & Ors., (1986) 60 Comp Cas 154 (Bom);
M/s Ascot shoes private limited V. Registrar of Companies;
M/s Pancham Hotel Private Limited V. Registrar of Company;
M/s Medtech Pharma (India) Pvt. Ltd V. Registrar of Company;
M/s Santaclus Toys Pvt. Ltd V. Registrar of Company;
M/s Deepsone Non-ferrous rolling mills Pvt. Ltd V. Registrar of Company;
M/s Kakku E and P Control Pvt. Ltd V. Registrar of Company;
M/s Sohal Agencies Pvt. Ltd V. Registrar of Company.

DECISION BY NCLT
After considering the aforesaid judgements and foregoing, facts and circumstances NCLT allowed the restoration of the name of the petitioner company in the Registrar of the companies.
However, the Hon’ble court directed the petitioner company to pay INR 1,00,000 to the Prime Minister Relief Fund and do all compliance which should be done as if the company was not struck off like filing of Annual return and Balance Sheet or any other formalities to restore the name in the register of the Registrar.

Link to download judgement:

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