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Revival process of a struck company is one of the challenging tasks for CA & CS, but certainly, before filing of a restoration application before NCLT, you have to submit Audited balance sheet of all previous years. In this article, we will discuss the process of revival of a Struck Company under Companies Act, 2013.
Registrar of Companies (ROC), by the virtue of the power, can strike off defunct companies. There are companies which are not carrying on any business or operation for a period of 2 years or more or Companies that are not carrying on any operations within one year of its incorporation can be struck.
Such companies (which have not done their statutory filings) are therefore deemed (by ROC) not to be carrying on their business. These actions of government have caused a massive upheaval to the companies who have not done their statutory filings). Though the ROC must have served notices as mandated on the registered email ids of the Companies before striking them off, in many cases, there were complaints of not receiving any notice.
However, to such aggrieved companies, the remedy lies in Section 252 of the Companies Act, 2013, which provides for restoration of the name of the Company.
Revival Process of the Name of a Struck Company under Companies Act, 2013 can be done by following these steps –
Any person aggrieved by the order of the Registrar (ROC) to strike-off the name of a Company, can file an appeal within a period of 3 years from the date of the order of the Registrar.
If a Company or any member or creditor has been aggrieved by the Company’s name struck off, it can apply to the Tribunal to restore the Company’s name, within a period of 20 years from the date of publication of striking off notice in the official Gazette.
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.
Procedure to Apply to Tribunal as per National Company Law Tribunal-
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 14 days before the date fixed for hearing of the appeal or application.
The Tribunal may pass an appropriate order, upon hearing the appeal or the application or any adjourned hearing thereof. Once the Tribunal makes an order for restoring the name of a Company in the register of companies, the order shall direct that-
After restoration, all the statutory returns of the Company shall be filed along with the applicable additional fee/ penalty as per Companies Act 2013.
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.
The due process for revival of the struck company should be followed sincerely to revive a company. In case you need more insight on its procedure or any other information, contact Enterslice.
Read our article:Can a struck off company get restored?