Case Note & Summary
The appeal was directed against a judgment by the Division Bench of the High Court of Calcutta, which set aside a prior order by a Single Judge restoring the name of Basanti Cotton Mills (1998) Private Limited. The company was initially incorporated as Basanti Cotton Mills Private Limited, with its name changed in 2000. The Registrar of Companies struck off the company's name in 2006 due to inactivity, as the last annual return was filed for the financial year 2002-2003. The appellant, claiming to be a director, filed a complaint under Section 560(6) of the Companies Act, 1956, which was initially allowed by the Single Judge. However, the Division Bench later ruled that the appellant lacked locus standi to challenge the striking off, as he was not a member or creditor of the company. The court emphasized reliance on the Registrar's records, which did not support the appellant's claim of directorship. The court noted that the company was deemed defunct under Section 3 of the Act due to its low paid-up capital and inactivity for years. The appeal was ultimately dismissed, with the court finding no reason to interfere with the High Court's decision.
Headnote
A) Company Law - Striking Off Company Name - Locus Standi - Companies Act, 1956, Section 560(5) - The appellant was found to have no locus standi as he was neither a member nor a creditor of the company, thus unable to challenge the Registrar's order. The High Court's reliance on the Registrar's records was upheld, indicating the appellant's status as a director was not established. Held that the appeal was dismissed due to lack of standing (Paras 6-12).
Issue of Consideration
Whether the appellant had the locus standi to challenge the striking off of the company's name by the Registrar of Companies.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's finding that the appellant had no locus standi to challenge the striking off of the company's name.
Law Points
- Companies Act
- 1956
- Section 560(5)
- defunct company
- locus standi
- striking off company name
