The Tax Publishers 2019 TaxPub(CL) 0642 (NCLAT-Del) : (2019) 214 CompCas 0360

 

Adroit Trade (P) Ltd. & Anr. v. Registrar of Companies

 

COMPANIES ACT, 2013,

--Appeal from orders of Tribunal --Appeal against rejection of application for restoration of name of company Pendency of litigation--Cogent reasons for restoration of name of company--Though pendency of litigation was judicially recognized as a 'just' ground for restoration of name of company, Tribunal erred in declining to restore the company merely on the ground of statutory non-compliances, there were cogent reasons justifying its restoration, thus, name of the company was restored with direction to file all statutory returns together with fees and penalties.--RoC had struck off name of company as the company had not filed financial statements and statutory returns. The company filed an application under section 252 for restoration of name of the company in register of companies, but Tribunal rejected the same. Therefore, the company filed an appeal against the order on the ground that pendency of litigation was a just ground for restoration of name of the company. Held: The company had acquired a land, but due to pending litigation the land owned by the company could not be utilized for development and commercial activities as per its object clause. Further that, the company had continuously paid municipal taxes on the land owned by it. The company had been able to establish that it had been carrying on business of sale and purchase of property. The Tribunal erred in declining to restore the company merely on the ground of statutory non-compliances when there were cogent reasons justifying its restoration. Further that, the pending litigation in itself had been judicially recognized as a 'just' ground for restoration of name of the company. Thus, the name of company was restored in the register of companies and the company was directed to file all statutory returns together with fees and penalties.

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