Sunday, August 30, 2020

If Your Struck off Company is having some property in its name it could ...







Pending Litigation, at the request
of unsecured creditor , to take delivery of imported goods from port,  agreement to sell the properties of struck
off companies, proof of new orders on hand or a development contract company’s
name can be restored by NCLT.

GRIFFIN DEVELOPERS PVT LTD v. ROC KERALA

The appellant company applied for striking off
the name of the company under Fast Track Exit Scheme (FTE). ROC Kerala
accordingly struck off the company.

In the mean time , the Directors of
the company purchased some lands and this was inadvertently registered in the
name of the company instead of directors Name.

As the lands purchased were
registered in the name of the company inadvertently , it has become necessary
for the members of the company to restore the name of the company under section
252 of the Companies Act , 2013.

Consequent upon striking-off from
the Register of Companies, any transaction pertaining to properties owned by
such companies by the Directors or authorized signatories of such companies
would be void ab initio and a nullity, till such companies are restored by an
NCLT order u/s. Section 252 of Companies Act, 2013;

 Properties of struck off cos. from RoC cannot be used,
operated, transferred or alienated in any manner until revival by NCLT.

NCLT
RESTORES 46 Struck Off Companies to protect Revenue’s Interest.

NCLT, vide its interim orders,
directs 46 companies (which were struck-off by ROC) to be deemed to be restored
to its original number and entitles petitioner (Tax Dept.) to raise demand by
serving notice in 
accordance with law; In case of few
of the companies, NCLT notes that re-assessment proceedings u/s. 148 have to be
initiated,


It was argued by the ROC that the
company has concealed and filled FTE application concealing the fact that It
does not have any assets and liabilities.
Further , ROC informed that they
received tax arrears demand from the Income Tax authorities against the
company.

Where appellant-company was able to
satisfy that it was owner of property when its name was struck off by
respondent-RoC from its register which it wants to utilize now to carry on its
business activities and since no objection to restoration of name of
appellant-company had been raised in report of RoC, name of appellant-company
was to be restored in register of companies.

Company Law  NCLT - Kochi  
No objections were received in ROC’s report; name of company was to be
restored in register of companies.

Restoration despite annual filing default for 14 years

One can apply for the Restoration of
the Name of the Company within 20 years of struck off notice.

Mumbai High Court Allowed pvt co’s
name restoration despite annual filing default for 14
years
in (Bulakidas Mohta Co. P. Ltd.) v. RoC, Maharashtra, &Ors.
Cannot Operate the Bank Account

Ex-Directors and ex-Authorized
Signatories will “not be able to operate bank accounts of such companies till
such companies are legally restored under Section 252 of the Companies Act by
an order of the National Company Law Tribunal.
ASM Consultant Private Limited, VS  ROC, Pune

t is seen from the
petition that the company generated revenue in the F.Y. 2016- 17 & 2017-18.
The Company has generating revenue to the tune of ₹ 29,18,960/- in the F.Y.
2016-17 and ₹ 12,15,280/- in the F.Y. 2017-18. Therefore, it can be said to be
a running concern, the ground for strike-off i.e. “no business operations for a
period of last two financial years” by ROC appears to be unfounded

The Company has not
deposited heavy cash in its Bank Account during the period of Demonetizations
i.e. from 8th November 2016 to 31st December 2016, as noticed from the annexed
Affidavit along with this Petition/Application.

However, it is further
submitted in the said report that the RoC has no objection to restore the name
of the Petitioner Company, if the Petitioner Company is willing to comply with
the provisions of the Act, subject to imposition of Cost.

New Delhi NCLT: Allows restoration of Company’s name at
the behest of unsecured creditor

Allahabad NCLT: Pending litigation a valid reason
for name restoration, allows petition



Allahabad
NCLT: Name Restoration necessary for taking delivery of goods from Port, allows
application

2 comments:

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  2. Struck Off Companies is an important process to ensure that inactive or non-operational companies are removed from the official records.
    This helps to maintain the integrity of the company registry and prevent fraudulent activities.
    However, it's important to ensure that the process is carried out fairly and transparently, with due regard for the rights of the company's stakeholders.
    It's also important to note that striking off is not applicable in all cases, and there may be other legal options available.
    Overall, striking off companies is an important tool for maintaining the health and transparency of the corporate world."

    ReplyDelete