AI Structured Summary
Not yet generated for this judgment
Judgment
Narender Kumar Bhola, Member (Technical)
This is an appeal filed under section 252(1) of the Companies Act, 2013 read with Rule 87A of the NCLT (Amendment) Rules, 2017by the Appellants against an order of striking off the name of the M/s Inovace Automotive Private Limited ('The Company'/ 'Appellant Company') passed by the Respondent vide notice no. ROC- DEL/248(5)/STK-7/6217 dated 29th October, 2019. Learned counsel for the Appellants represent that the Appellant Company was incorporated under the provisions of Companies Act, 2013 and has its registered office at House No. 192-193, 3rd Floor, Pkt. 3, Sector 22, Rohini Near Maharaja Agarsen Institute of Technology, New Delhi- 110085.
The Company's main objects are to establish and carry on in India and abroad the business of manufacturing, buying, selling, reselling, trading, importing, exporting, altering, improving, cutting, shaping, rolling, re-rolling, developing, agents, broker, whole seller, accessories, break lining and clutch facing or otherwise to deal in all types, varieties, models, shapes, sizes, spare parts, three-wheeler and other vehicles of all kinds goods and animals, compressors parts and to establish and carry on in India or elsewhere the business to own, lease, manage, run establish, install and build workshop fuel station, accessories, fittings consumables, and incidental acts and things necessary for the attainment of the above objects and to carry on the business of motor parts, dealers and suppliers in petrol oil, gases and to act as manufacturing consultant and provide technical and managerial know how in all or any aforesaid fields. It is submitted on behalf of the Appellants that the company could not file the financial statement and annual return for the period for financial year 2015-2016 to 2019- 20.The reason provided by the Appellants for not filing is that the company was not carrying on the business activities for past years and the management was under the impression that the Appellant Company do not have any assets or liability and thus they are not required to file any statutory documents with Registrar of Companies (RoC). It is further stated that the due to lack of proper professional advice, the company could not file the financial return and annual return before RoC.
Upon notice to the Registrar of Companies ("RoC"), the RoC has filed its affidavit and reply. The Learned Assistant ROC for the RoC appeared and submitted that the action of striking off of the Company was legal and justified and was the result of operation of law, as the Company was not having any revenue from operation for financial year 2016-17, 2017-18 and 2018-19 and as per profit and loss account attached-revenue from operation is "Showing Zero", which fails to support the claim of the company that it was carrying on any business in last three financial years. Hence, prayed that the Appellant Company may be directed to prove that it was carrying on the business or was in operation.
activities for past years and the management was under the impression that the Appellant Company do not have any assets or liability and thus they are not required to file any statutory documents with Registrar of Companies (RoC). It is further stated that the due to lack of proper professional advice, the company could not file the financial return and annual return before RoC.
Upon notice to the Registrar of Companies ("RoC"), the RoC has filed its affidavit and reply. The Learned Assistant ROC for the RoC appeared and submitted that the action of striking off of the Company was legal and justified and was the result of operation of law, as the Company was not having any revenue from operation for financial year 2016-17, 2017-18 and 2018-19 and as per profit and loss account attached-revenue from operation is "Showing Zero", which fails to support the claim of the company that it was carrying on any business in last three financial years. Hence, prayed that the Appellant Company may be directed to prove that it was carrying on the business or was in operation.
i. Copy of Importer Exporter Code in the name of Appellant Company
ii. Copy of Audited Financial Statements for the F.Y. 2015-16 to 2019-20.
iii. Copy of purchase - sale invoices in the Appellant Company.
A perusal of the documents referred to in the paragraph above, reflects that the Company is not in business for preceding three years and same is evident from the bank statement attached by the appellants as the bank statement showed only the charges deducted by the Banks for their services and there is no other worthwhile transaction to show that the company was operating during the preceding financial years. Furthermore, report of the RoC has also pointed out that the Revenue Operations for F.Y. 2016-17, 2017-18 and 2018-19 is "Showing Zero". The action of RoC of striking off the company was legal and justified and was the result of the operation of the law.
Accordingly, the appeal is dismissed in the light of the observation made by this tribunal in the preceding paragraphs
The appeal is disposed of accordingly. Let the copy of the order be served to the parties.