Victor Buildmart Private Limited vs Registrar Of Companies And Anr.

This appeal is filed by the company, M/s Victor Buildmart Private Limited (for brevity the ‘Company’), through its Director, Ms. Tanya

Ahuja, 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 03.04.2000 having CIN U75140DL2000PTC104951. The company has changed its name evidenced by certificate of

incorporation dated 1.12.2007 from India Detective and Security Services Private Limited to Victor Buildmart Private Limited which is placed on

record.

The company is having registered office at B1/03, Shivaji Apartment No. 4, Sector-14, Rohini, New Delhi-110085.

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

share capital of the Company is Rs.40,06,080/- divided into 4,00,608 equity shares of Rs.10/- each.

The main objects of the company are:

i. To engage in infrastructure development, real estate promoters, developers and project management association including civil, mechanical, electrical

and all other type erection, commissioning projects, project trading as well as consultant for execution of project on turnkey basis.

ii. 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, 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 company issued by Induslnd Bank, from 21.06.2014 to 02.03.2016, reflecting various transactions done by the

company during the period of striking off, and having closing balance of Rs. 12,00,000/-

ii. The copies of Financial Statements of the company for the financial years from 31.03.2014 to 31.03.2016, reflecting Loss of Rs. 8,355/-

iii. The copies of Income Tax Returns filed for the assessment years 2014-15 to 2016-17 as NIL returns.

iv. The copy of lease deed, dated 26.05.2014 executed by Sh. Parveen Arora as lessor in favor of the appellant company, as lessee for the property

situated at House No. B1/03, Sector-14, Shivaji Apartment No. 4, Rohini, New Delhi, for the term of three years, as claimed by the appellant company

i.e. Valid upto 25.05.2017.

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 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 not submitted its report despite of giving various opportunities but the appellant company has filed and also

annexed Income Tax Returns along with the affidavit.

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.