Maharaja Lifestyles Private Limited And Ors. vs Registrar Of Companies, Mumbai

This present Petition has been filed under Section 252 (1) of the Companies Act, 2013 (Act) by MAHARAJA LIFESTYLES PRIVATE

LIMITED through its one of the Directors Mr. Ajay Ballabh Mehta praying for restoring the name of the company in the Register maintained by the

Registrar of Companies, Mumbai (RoC).

The Petitioner submits that the Petitioner company has been incorporated to carry out the following objects:

“To carry in India and abroad the business of manufacturers, importers, exporters, wholesalers, retail dealers, designers of and in

men’s, women’s and children clothing, readymade garments, wearing apparel, home textiles of various kinds, sizes and designs

made of cotton yarn, nylon, rayon, polyester silk, artificial silk and other fibrous materials and also to buy, sell, import or otherwise deal in

cotton yarn, silk, artificial silk, nylon or fibrous materials and also the products and byproducts made thereof.â€​

The Petitioner submits that the company was incorporated on 28.02.2014 under the Companies Act, 2013. The Company has failed to file its

Financial Statements and Annual Returns for the Financial Years i.e., 2016-17, 2017-18 and 2018- 19 for three years.

The Petitioner submits that the Respondent failed to send the notices required under section 248(1). The Petitioner submits that the Petitioners were

trying to file the Annual Returns and Financial Statements with the Registrar of Companies, the Petitioner were unable to file the forms. The

Petitioners checked the Master data of the Company which showed the status as struck-off. The Petitioners submits that with the Professional help

the Petitioners came to know that the Registrar of Companies, Mumbai vide public notice under section 248 (5), published the name of the Petitioner

Company in the Official Gazette on 28.08.2019.

The Petitioner submits that the Petitioner Company did not receive any show cause notice from the Respondent nor any opportunity of being heard.

The Petitioner submits that the Company is active since incorporation and is also maintaining all the requisite documents.

The Petitioner submits that the Annual Returns and Financial Statements could not be filed due to inadvertence and was not done on time. The

Petitioner Company submits that the Company is active from its incorporation and is maintaining all the documents as per the provisions of the

Companies Act, 2013.

The Petitioner submits that the Company has Current Assets amounting to Rs.5,45,328/-, Long Term loans and Advances amounting to

Rs.10,21,657/- and Fixed Assets valuing to Rs.8,18,610/- on its name and brief of the particulars is mentioned in Balance sheet of the company. The

petitioner further submits that the company is a ongoing concern having Turnover of Rs.11,74,083/- in financial year 2018-2019.

The Petitioner Company has enclosed the audited accounts for the Financial Years 2017-18 and 2018-19 to show that it is actively involved in the

business and operations.

The Petitioner Company has also enclosed copies of the Acknowledgement of Income-Tax Returns filed with the Income-Tax Authorities for the

Assessment Years 2018-19 and 2019-2020.

The Respondent, Registrar of Companies submitted his Affidavit in reply on 25.08.2020 explaining the following sequence of events leading to the

striking of the name of the company:

(a) The Respondent side issued Notice in Form STK-1 to the company and its directors informing the intention of the Registrar to strike off the name

of the Company and requesting them to submit a cause contrary to the said action within thirty days.

(b) Further, as required under rule 7 of the Companies (Removal of Name) Rules, the name of the Company was published on the website maintained

by the Ministry vide STK-5 dated 28.08.2019 and issued notices not only to the Company and the Directors of the company, but also to all

stakeholders concerned so as to receive their objections to the said intention of the Registrar to remove the name of the company.

(c) In addition to the publication of the name of the Company on the website of the Ministry, the name was also published in the Official Gazette on

28.08.2019 and in leading English newspaper “Times of India†and a widely circulated regional language in Marathi newspaper “Maharashtra

Timesâ€​.

(d) Respondent further submits that in the absence of any representation against the proposed strike off action, the Registrar struck off the name of

the company on 08.11.2019 and the dissolution order was published on the website of the Ministry vide STK-7 on 08.11.2019.

Upon perusal of the audited accounts submitted by the Petitioner Company, the Bench is satisfied that the Company is in operation. The Company

has Fixed assets of Rs. 8,18,610/-, Inventories Worth Rs. 3,65,461/- and Long Term loans and advances of Rs. 10,21,657/-, Long Term borrowings of

Rs. 30,44,315/- and Short Term borrowings of Rs. 94,144/- for year ended 31.03.2019. The Company has also spent approximately Rs. 11.63 lakhs

towards various expenses for year ended 31.03.2019. For year ended 31.03.2018 the Company has Fixed assets of Rs. 8,98,122/-, Inventories Worth

Rs. 5,65,955/- and Long Term loans and advances of Rs. 10,71,657/-, Long Term borrowings of Rs. 35,44,315/- and Short Term borrowings of Rs.

83,101/-.

As observed above, the books of the Petitioner Company reflect that the Company is in operation and Members intend to continue its business.

Therefore, in the interest of justice the name of the company deserves to be restored in the Register of Companies maintained by the Respondent

Registrar of Companies.

Given the above facts and circumstances, we are satisfied that the prayer sought by the Petitioner company deserves to be allowed.

ORDER

Company Appeal CP No. 998/252(1)/MB/C-II/2020 filed by Appellant/Petitioner MAHARAJA LIFESTYLES PRIVATE LIMITED, through its

Director MR. AJAY BALLABH MEHTA, seeking restoration of the company’s name in the Register of the Companies maintained by the

Registrar of Companies, Mumbai is allowed with the following terms.

The Respondent is directed to restore the name of the Petitioner company in the Register of Companies subject to payment of a sum of Rs. 30,000/-

(Rupees thirty Thousand only) as cost payable in the account of “Prime Minister’s National Relief Fundâ€​ fund within thirty days from the date

of receipt of copy of this order.

The company shall file all its pending financial statements and Annual Returns with all the applicable fees and late fees with the Respondent within a

period of thirty days from the date of receipt of copy of this order, failing which, this order will stand vacated automatically.