Multi-Tec Realtors Pvt. Ltd. And Anr. vs Registrar Of Companies And Anr.

This appeal is filed by the company, M/s Multi-Tec Realtors Private Limited (for brevity the ‘Company’), through its shareholder, Mr. Akash

Gupta under Section 252(1) of the Companies Act, 2013 (for brevity ‘the Act’) against the order of striking off the name of the company

passed by the respondent under section 248 (1) of the Act read with Rule 7 of Companies (Removal of Names of Companies from the Register of

Companies) Rules, 2016 published on 30.06.2017 vide notification no. ROC-DEL/248(5)/STK-7/2879 by Registrar of Companies, the respondent

herein.

The company is incorporated as a Private Limited Company under the provision of Companies Act, 1956 with the Registrar of Companies, NCT of

Delhi and Haryana on 15.07.2006 having CIN U70109DL2006PTC151027.

The company is having registered office at A-1/1 Krishna Nagar, New Delhi.

Authorized share capital of the Company is Rs.5,00,000/-divided into 50,000 equity shares of Rs.10/- each and issued, subscribed and paid up share

capital of the Company is Rs. 1,00,000/- divided into 10,000 equity shares of Rs.10/- each.

The main objects of the company are:

i. To purchase, sell, let-out, construct, erect, pull down, rebuild, enlarge, alter, improve or otherwise deal in, either on its own or in collaboration with

any individual, firm, government/semi-government authority, company or any other person residential houses, flats, apartments, buildings, commercial

complexes, offices, factories, shopping plazas, shops or work of any description and to purchase, sell, own, manage, develop, take on lease, to

exchange, assign, hire or otherwise acquire and/or dispose off, lands and properties of any description or nature whether in India or abroad.

And other main objects.

As per the notice of non- compliance of provisions of the Companies Act, 2013 in respect to filing of annual returns and financial statements since

incorporation, the name of the company was struck off in terms of provision of Section 248(1) of the Companies Act, 2013 read with Rule 7 and Rule

9 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

The Appellant has submitted that the company was in operation and the business activities were carried out by the company during the period of

striking off but the reporting of such activities through Annual Returns and Financial Statement had not been filed with Registrar of Companies due to

inadvertence on part of the management.

The Appellant has brought forward the following facts about it being in operation and functional during the period of striking off:

i. The copy of Bank Statement of the company issued by Bank of Baroda, from 02.03.2009 to 08.11.2013, having NIL balance since bank account of

the company became dormant. Thereafter the appellant further affirms that no transaction had been done by the company after 2013. The Ld counsel

of the appellant submits that the company carried out the business transactions in cash since the money involved was in small denominations and the

payments were received from small entrepreneurs or individuals.

ii. The copies of financial statements of the company for the financial years from 31.03.2012 to 31.03.2017, reflecting Profit of Rs. 9,688/- in the year

2017.

iii. The company has incurred employee benefit expense of Rs. 48,000/- for the financial year ending on 31.03.2017.

iv. The copies of Income Tax Returns filed for the assessment years 2016-17 & 2017-18. The tax paid for the year 2016-17 is Rs. 6820/-

v. The copy of receipts of the payment made through cheque for the property being purchased by the applicant company from Omaxe Ltd, dated

10.06.2015, situated at Omaxe SPA Village Faridabad, for Rs. 49,63,150/-, and also being reflected in the balance sheets of the relevant years. The

remaining outstanding dues are of Rs. 2,73,637/- along with interest charges, VAT and service tax to which Omaxe Ltd has sent reminder letter dated

05.06.2018 for clearing the dues.

vi. The copies of two self-attested cheques dated 02.05.2013 of HDFC Bank of Rs. 35,00,000/- and another cheque dated 02.05.2013 of Citi bank of

Rs. 30,00,000/-, which the company has received from Mr. Shyam Sunder Sharma, credited in the company’s bank account on dated 04.05.2013.

vii. The copy of PAN Card and Aadhar Card of Mr. Shyam Sunder Sharma for identification and proof of address.

It is further submitted by the Appellants that the failure to file financial statements and annual returns with the Registrar of Companies, NCT of

Delhi and Haryana was due to inadvertence on part of the management and due to lack of professional guidance and as such there was no wilful or

mala-fide motive behind non-filing of the Financial Statements and Annual returns.

The Registrar of Companies has stated that it has no objection if the name of the Company is restored on proving by the Company that it was

carrying on business or was in operation and the Company be also directed to file financial statements up to date with appropriate filing and additional

fees.

The Income Tax Department has submitted in its report that there is no outstanding demand against the Assessee and has no objection if the

company is considered for revival.

The Section 252(3) contemplates that one of the three conditions are required to be satisfied before exercising jurisdiction to restore company to its

original name on the register of the Registrar of Companies namely:

i. That the company at the time of its name was struck off was carrying on business.

ii. Or it was in operation

iii. Or it is otherwise just that the name of the company be restored on the register.

The Appellant have submitted sufficient evidence that it has been in operation since incorporation and therefore could not be termed as defunct

company. Thus, taking into consideration the provisions of Section 252(3) of the Companies Act, 2013 which vests this Tribunal with a discretion

where the Company whose name has been struck off and such Company is able to demonstrate that there is a running business as on the date when

the name was struck off and also keeping in consideration that it is just to do so can restore the name of the Company in the Register and in the

interest of all stakeholders including the Appellant itself who seeks restoration of the name of the Company in the register maintained by Registrar of

Companies, the company deserved to be restored.

Accordingly, this appeal is allowed. The Public Notice of Registrar of Companies striking the name of the company is set aside. The restoration of

the company’s name to the Register of Registrar of Companies is ordered subject to its filing of all outstanding documents with proper filing fees

along with additional fees required under law and completion of all formalities, including payment of any late fee or any other charges which are

leviable by the respondent for the late filing of statutory returns, and also subject to payment of cost of Rs. 25,000/- to be paid to Prime Minister’s

Relief Fund. The name of the Appellant Company shall then, as a consequence, stand restored to the Register of the Registrar of Companies, as if the

name of the company had not been struck off in accordance with Section 248(1) of the Companies Act, 2013.

The appeal is disposed of accordingly.

Let the copy of the order be served to the parties.