{"id":27738,"date":"2020-01-09T15:27:58","date_gmt":"2020-01-09T09:57:58","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=27738"},"modified":"2020-01-09T19:38:53","modified_gmt":"2020-01-09T14:08:53","slug":"can-a-struck-off-company-get-restored","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/can-a-struck-off-company-get-restored\/","title":{"rendered":"Can a struck off company get restored?"},"content":{"rendered":"<p class=\"has-drop-cap\">The Ministry of Corporate Affairs is taking stringent actions against shell companies and non-compliant companies not filing their annual returns and financial statements regularly. The Ministry of Corporate Affairs struck off more than 2 lakh companies and also disqualified around 3 lakh Directors under section 248(1) and section 164(2)(a) of the Companies Act, 2013 for not filing financial statements and annual return for a continuous period of two years or more. The struck off company gets reactivated by filing an appeal to the National Company Law Tribunal (NCLT). NCLT <a href=\"https:\/\/enterslice.com\/revival-of-struck-off-companies\">restores the struck off company<\/a> in the register of companies (ROC) if the removal of the name is not justified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are\nthe reasons to strike off a company?<\/h2>\n\n\n\n<p><strong><em>As per Section 248(1) following are the reasons to strike off a company:<\/em><\/strong><\/p>\n\n\n\n<ul><li>A company has failed to commence its business within one year of its incorporation.<\/li><li>A company is not carrying any business or operation for a period of two immediately preceding financial years<\/li><li>The Subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of the company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation.<\/li><li>A company by extinguishing all its liabilities, by a Special Resolution.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the process to restore\nstruck off company?<\/h2>\n\n\n\n<p>Below are the <a href=\"https:\/\/enterslice.com\/learning\/procedure-for-striking-off-a-company-under-companies-act-2013\/\">processes of restoring a stricken off company<\/a>:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/rivive-stuck-of-company.png\" alt=\"Process of Revive Struck off Company\" class=\"wp-image-27744\" width=\"277\" height=\"277\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/rivive-stuck-of-company.png 840w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/rivive-stuck-of-company-150x150.png 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/rivive-stuck-of-company-300x300.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/rivive-stuck-of-company-768x768.png 768w\" sizes=\"(max-width: 277px) 100vw, 277px\"\/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/process-of-revive-stuck-of-company.png\" alt=\"Revive of Struck off company\" class=\"wp-image-27745\" width=\"721\" height=\"374\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/process-of-revive-stuck-of-company.png 614w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/process-of-revive-stuck-of-company-300x156.png 300w\" sizes=\"(max-width: 721px) 100vw, 721px\"\/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">1. Who can file an application to restore struck off company?<\/h3>\n\n\n\n<p>According to the\nprovisions of section 252(1), an appeal can be made by anyone, within three\nyears of strike off.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"541\" height=\"185\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/application-to-restore-struck-off-company.png\" alt=\"Who can file an application to restore struck off company\" class=\"wp-image-27746\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/application-to-restore-struck-off-company.png 541w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/application-to-restore-struck-off-company-300x103.png 300w\" sizes=\"(max-width: 541px) 100vw, 541px\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">2. Filing letter of appeal in the National Company Law Tribunal<\/h3>\n\n\n\n<p>Under the provisions of Section 252(3), a letter of appeal can be written by a company or creditors or members or workman to the Tribunal within <strong>20 years<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Preparation of Petition<\/h3>\n\n\n\n<p>The petition is to be filed With <a href=\"https:\/\/nclt.gov.in\/\">NCLT<\/a> in form No.NCLT-9. All the relevant documents are to be submitted along with the required fee. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Submission of petition<\/h3>\n\n\n\n<p>A copy of\npetition is to be presented at the Registrar of Companies and to such other\ncompanies as directed by the Tribunal, not less than 14 days from the date\nfixed for hearing of the application.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Hearing by the Tribunal<\/h3>\n\n\n\n<p>The tribunal will hear the appeal of the petitioner and arguments of the Registrar of Companies. And if satisfied the restoration of the company will be done.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Ruling or order of the Tribunal<\/h3>\n\n\n\n<p>The Tribunal will make the following Order in case it agrees on\nthe revival of struck off companies:<\/p>\n\n\n\n<ul><li>Within 30 days, the\npetitioner shall deliver the certified true copy of the petitioner&rsquo;s Order to\nthe Registrar of Companies.<\/li><li>The order copy to be\npublished in the Official Gazette in the official seal of Registrar of\nCompanies,<\/li><li>The petitioner to pay\nthe cost incurred by the Registrar of Companies. All pending annual returns and\nfinancial statements to be cleared by the Company as per the Companies Act,\n2013.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">7. Submitting the Ruling to the Registrar of Companies<\/h3>\n\n\n\n<p>Using form\nINC-28 an exact certified copy of the Order to be filed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Publication in the Official Gazette<\/h3>\n\n\n\n<p>Upon receipt of\nthe Order, the Registrar of Companies will get it published in its official\nname and seal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Filing of the Pending Documents at the Registrar of the Companies<\/h3>\n\n\n\n<p>All pending\nannual returns and financial statements shall be filed at the Registrar of\nCompanies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the timeline for filing\nan application for restoration of struck off company?<\/h2>\n\n\n\n<p> <strong><em>The company that has been delisted by ROC can apply for reactivation within the below-discussed timelines:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The company to apply for revival has 20 years from the date of strike-off where the order of delisting was passed by National Company Law Tribunal (NCLT).<\/li><li>The company has 3 years from the date of order passed by Registrar of Companies to apply for restoration.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the documents to\nbe submitted to restore a company?<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/restore-a-company.png\" alt=\"documents to restore a company\" class=\"wp-image-27747\" width=\"492\" height=\"224\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/restore-a-company.png 637w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/restore-a-company-300x137.png 300w\" sizes=\"(max-width: 492px) 100vw, 492px\"\/><\/figure><\/div>\n\n\n\n<p>Authorized Signatory or Director of the Company signs all the documents affixed by the company seal. <\/p>\n\n\n\n<p><strong><em>The following documents must be submitted:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/documents-for-Revival-of-struck-of-company.png\" alt=\"documents required\" class=\"wp-image-27748\" width=\"490\" height=\"366\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/documents-for-Revival-of-struck-of-company.png 452w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/documents-for-Revival-of-struck-of-company-300x224.png 300w\" sizes=\"(max-width: 490px) 100vw, 490px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Documents submission<\/h2>\n\n\n\n<p>The documents mentioned above must be submitted to the National Company Law Tribunal and the Registrar of Companies Office. The entire process takes about 1 to 2 months on average. The practicing professional will present all the necessary documents to the Tribunal and will file for a hearing. If the NCLT is satisfied the status of the Company will be changed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Penalty Actions against\nCompanies appealing for Restoration<\/h2>\n\n\n\n<p>Just filing of an appeal does not guarantee Restoration.\nSome of the rare orders where penal action was taken against applicants:<\/p>\n\n\n\n<p><\/p><div class=\"shadow4\"><em><strong>M\/S Rainbow Real Estate Pvt. Ltd. V\/S Registrar of\nCompanies<\/strong><\/em>\n\n\n\n<p><strong>The petitioner was charged a fine of Rs.20,000 on the ground of\nvexatious cause and unnecessarily dragging ROC before the Tribunal. The case\nwas dismissed as it turned out that the applicant had neither filed the income\ntax return nor any statutory filing.<\/strong><\/p><\/div>\n\n\n\n<p><\/p><div class=\"shadow4\"><em>&nbsp;<strong>M\/S International Security Printers Pvt. Ltd.\nV\/S Registrar of Companies (NCLT Delhi bench)<\/strong><\/em>\n\n\n\n<p><strong>Here they allowed the appeal and ordered for restoration. In this case, though the petition was not rejected, ROC was granted liberty to levy penalty on the Company.&nbsp;<\/strong><\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">DIN reactivation of struck off companies<\/h2>\n\n\n\n<p>The process of DIN Reactivation can be initiated; once the strike-off is cleared.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is the Company Automatically restored if the Order is passed by NCLT?<\/h2>\n\n\n\n<p>The\nanswer is no. The petitioner will have to submit a certified copy of the Order\nwith the Registrar of Companies within 30 days from the Order. After the\npublication of Order of Restoration in the official Gazette, it will be\nconsidered the Company is restored. All the orders regarding filing of annual\nreturns and financial statements are to be followed as directed by NCLT.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">We at Enterslice are eager to\nhelp you!<\/h2>\n\n\n\n<p><strong><em>We have expertise and experience in helping your Company be active again.<\/em><\/strong><\/p>\n\n\n\n<ul><li>We\nhave professionally skilled persons who will help you in the end to end process\nof restoring the Company.&nbsp;<\/li><li>Our\nrecruited professional can be contacted at any time for consultation and\nassistance of any kind needed to reactivate your Company.&nbsp;<\/li><li>We\nhave dedicated professionals who will collect all the required documents and\nfile the appeal and application in the Tribunal for the revival of your\nCompany.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>The\nstruck off companies need to seek the best advice on a priority <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. The\ncompanies need to stick on all the prescribed rules to keep it safe and\nprogressive. The mere filing of an application does not guarantee that the\ncompany status will change. All the procedures are to be followed and it is in\nthe best advice to the petitioner to hire an expert. It is a time taking\nprocess with complex formalities a true professional with all the experience can\nbe of great help.<\/p>\n\n\n\n<p><strong>Read, More<\/strong>: <a href=\"https:\/\/enterslice.com\/learning\/revival-struck-off-companies-impact-analysis\/\">Revival Struck Off Companies and Its Impact Analysis<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs is taking stringent actions against shell companies and non-compliant companies not filing their annual returns and financial statements regularly. The Ministry of Corporate Affairs struck off more than 2 lakh companies and also disqualified around 3 lakh Directors under section 248(1) and section 164(2)(a) of the Companies Act, 2013 for [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":27751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1290,2369],"tags":[],"acf":{"service_id":"108"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can a Struck off Company Get Restored? - Insight Details<\/title>\n<meta name=\"description\" content=\"NCLT restores the struck off company in the register of companies (ROC) if the removal of the name is not justified. 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