Case Note & Summary
The appeal was filed against the order of the National Company Law Tribunal (NCLT) dated 15.06.2022, which confirmed the Registrar of Companies' (RoC) action under Section 248 of the Companies Act, 2013, to strike off the name of Sri Sai Pardha Real Estates Private Limited from the register. The company, registered on 06.04.1994, was engaged in real estate but failed to conduct business or file annual returns. The RoC initiated proceedings due to non-compliance, leading to the company's name being struck off on 02.07.2018. The appellant, a shareholder and promoter, challenged this decision, arguing that the company had significant land assets and should be restored for winding up. The second respondent supported the appellant, highlighting ongoing sales of company lands by intervenors. The intervenors contended that the appellant lacked locus standi and had been misappropriating company assets. The court found that despite the company's defunct status, the presence of assets warranted restoration to ensure accountability and prevent revenue loss. The appeal was ultimately allowed, and all pending applications were closed without costs.
Headnote
A) Company Law - Restoration of Company Name - Just and Equitable Grounds - Companies Act, 2013, Section 248 - The appeal was allowed as the company had assets and was defunct, necessitating restoration for eventual winding up. The court noted the need for accountability regarding the company's properties and potential revenue loss to the Government (Paras 8-9).
Issue of Consideration
Whether the order of the Registrar of Companies to strike off the name of the company should be set aside and the company restored to the Register.
Final Decision
The appeal was allowed, restoring the company's name to the Register of Companies for eventual winding up. All pending interlocutory applications were closed without costs.
Law Points
- Restoration of company name
- Section 248 Companies Act
- 2013
- locus standi
- winding up
- accountability for assets
