The Tribunal has discretion to restore a company's name if it demonstrates active business and intention to comply with statutory obligations, serving the interests of justice and protecting stakeholders.

ORDER

This Company Appeal has been filed under Section 252(3) of the Companies Act, 2013 by M/s. Sanica Grand Developers Private Limited (hereinafter referred to as "the Appellant Company") seeking restoration of its name in the register maintained by the Registrar of Companies, Chennai (hereinafter referred to as "the Respondent"), which had been struck off under Section 248 of the Companies Act, 2013 for alleged non-compliance with statutory filing obligations.

2. The brief facts of the matter are tabulated below: -

3. The Appellant Company was duly incorporated on 31.08.2019, under the provisions of the Companies Act, 2013, bearing Corporate Identification Number (CIN): U70109TN2019PTC131407, with its registered office located at Boopal Nagar, Aruppukottai, Virudhunagar District, Tamil Nadu.

4. It is stated that the Company was formed with the principal object to engage in the business of property development and real estate, and it is submitted that it has been actively involved in such business since its incorporation. The detailed objects are set out in the Memorandum of Association filed along with this typeset.

5. It is stated that the Respondent struck off the Company’s name from the Register on 06.01.2023 due to the impeded Company’s ability to fulfil the necessary filings within the prescribed timeline and hence notice was issued under Form STK-7.

6. It is the case of the Appellant that the company has been erroneously struck off from the Register of Companies, due to its failure to file the declaration of commencement of business as mandated under Section 10A(1) of the Companies Act 2013, within a period of 180 days from its incorporation.

7. The Appellant has candidly admitted the lapse in fulfilling its statutory duty and has submitted that the non-compliance was inadvertent, unintentional, and without mala fide intent. The company asserts that it is a going concern and has substantial financial transactions reflected in its bank statements for the financial year 2021-2022, thereby evidencing the continuation of business operations during the relevant period.

8. The Appellant further submits that it is presently unable to carry on its business, enter into contracts, or access financial facilities owing to the striking off, which has caused severe prejudice to its shareholders and creditors. To safeguard its commercial interests and that of its stakeholders, the Appellant seeks restoration of its name in the register of companies.

9. REPORT OF THE REGISTRAR OF COMPANIES

9.1 The Respondent, the Registrar of Companies, Chennai, filed its report dated 30th April 2024, wherein it confirmed that the company was struck off for non-compliance with Section 10A(1) of the Act. The report emphasized that every company and its directors are statutorily obligated to file a declaration of commencement of business within the prescribed timeline and that failure to do so attracts penal consequences including striking off.

9.2 However, the Respondent has not raised any specific objection to the restoration of the Appellant Company, subject to compliance with statutory obligations and payment of fees/penalties as