Restoration of Companies under Section 252 of Companies Act, 2013

It is vital to keep a company's registration valid to operate legally. However, accidental failures in submitting required documents can result in the Registrar of Companies (ROC) removing your company's name from the list. This blog, by Dugain Legal, Attorneys and Lawyers, looks at a few cases handled by our respected legal associate, Ms. Reema Jain, showing different situations and factors in company registration restoration.

Instances of Company Appeals

The table summarizes cases where our legal associate, Ms. Reema Jain successfully represented companies appealing the ROC's decision to remove their names:

Case Title	Members of the Tribunal	Reasons for Restoration
Shakuntla Nutratec Private Limited/ M/S ESS ESS EXIM Private Limited/ MKP Farms Private Limited	Ms. Smt. Ina Malhotra, Ms. Deepa Krishan	The strike off was deemed unjustified as the company provided evidence of continuous business operations by reproducing following documents: - Copies of Auditor Report and balance sheet for the  Financial year, - Copy of Bank statements - Copy of Manufacturing license as per U.P. laws - Copies of Airway Bill for import and few sales invoices - Copy of resolution – authorizing the applicant direction for GST Registration - Copy of FSSAI License, Bill of Supply, Ledger Account,Copy of Income Tax Returns acknowledging  for Assessment Year, -Copies of Form 26 AS Form for a particular period etc. On perusal of documents referred above, a reasonable presumption can be inferred that company was ACTIVE before being struck off from the Register of Companies. The assumption of ROC that the company was not in operation was formed merely on grounds of non-filing of Statutory Returns.
Malik & Malik Pharma Pvt. Ltd	Ms. Ina Malhotra	The Company seeked restoration of name on just and equitable grounds. It is in possession of assets which it intends to use for business purpose. The company provided following evidence in support of its contention: -Copy of allotment letter in respect of a plot, issued by Himachal Pradesh Industrial Development Corporation which is duly reflected in balance sheets of Appellant company. -Latest Annual Maintenance paid in respect of aforementioned property. A perusal of documents referred above reflects that Appellant has certain assets which necessitate restoration of its name in Register of Companies.

The following are key considerations for the restoration of name of the Company according to Section 252 of the Companies Act, 2013:

1.    Ownership of immovable property: If the company owns any immovable property, this can be a valid reason for revival.

2.    Compliance with tax and other regulatory agencies: If the company has complied with all relevant tax and regulatory agencies, such as the Goods and Services Tax (GST), Income Tax, and Provident Fund, this can support the revival petition.

3.    Active transactions in bank statements: If there is evidence of active transactions in the company's bank statements, indicating that the company is still operational, this can be a strong ground for revival

4.    Renewal of licenses and documentation: If the company has renewed any licenses or documentation on an annual basis, this can demonstrate its continued operation

5.    Other evidence of operation: Any other evidence that demonstrates the company is still operational or functioning can also support the revival petition

We recommend that companies facing potential strike-off action due to non-compliance with statutory filings, to consult with legal counsel at the earliest. Our experienced team can guide you through the appeals process under Section 252 of the Companies Act and assist in compiling evidences to strengthen your case for restoration.