Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Revival of a company under Section 252 of the Companies Act, 2013, primarily involves the Tribunal's authority to restore a company's name to the Register of Companies if it has been struck off, provided certain conditions are met. The process allows companies, members, creditors, or other interested parties to appeal against the Registrar's order of strike-off ["Minna Jhakar VS Registrar of Companies Chandigarh - National Company Law Tribunal"] ["Madhu Bhambri VS Registrar of Companies - National Company Law Tribunal"].
The main points include:
The process often involves the company filing an application under Section 252(3), submitting pending statutory documents, and satisfying the Tribunal about the company's status ["Sandeep Mehra VS Registrar of Companies Punjab and Chandigarh - National Company Law Tribunal"] ["HUNDRED PERCENTILE EDUCATION PRIVATELIMITED VS Registrar of Companies NCT of Delhi and Haryana - National Company Law Tribunal"].
Insights and legal reasoning:
The Tribunal can impose costs or require the company to file pending documents as a condition for revival ["S M HOLDING AND FINANCE PRIVATE LIMITED VS Registrar of Companies Mumbai - National Company Law Tribunal"].
Additionally, the revival process is sometimes supported by the Income Tax Department or other statutory authorities, provided they do not object to the company's restoration ["HUNDRED PERCENTILE EDUCATION PRIVATELIMITED VS Registrar of Companies NCT of Delhi and Haryana - National Company Law Tribunal"].
Analysis and Conclusion:Revival under Section 252 of the Companies Act, 2013, offers a legal remedy for companies inadvertently struck off, enabling them to restore their status and continue operations. The Tribunal's role is to ensure that revival is justified, based on statutory compliance and the company's actual status at the time of strike-off. Proper procedural adherence, including filing pending statutory returns and obtaining necessary approvals, is essential for successful revival ["Minna Jhakar VS Registrar of Companies Chandigarh - National Company Law Tribunal"] ["Sandeep Mehra VS Registrar of Companies Punjab and Chandigarh - National Company Law Tribunal"].
In the complex world of corporate law, business owners and directors often search for quick fixes when their company faces distress. A common query arises: Please find revival of company under sect 253 of companies act. This question highlights a frequent misunderstanding about the role of Section 253. Spoiler: it's not the go-to provision for reviving companies. In this post, we'll clarify the misconception, explore the actual legal pathways for company revival, and draw from key judicial precedents to guide you.
Whether your company is struck off, in liquidation, or facing winding-up, understanding the right sections can make all the difference. Let's dive in.
Section 253 primarily addresses the discharge of accused persons in criminal proceedings against companies, not revival or reconstruction. It's a procedural tool rooted in criminal law aspects, often linked to the Code of Criminal Procedure (CrPC). V. R. Alexander VS R. W. Connor - 1916 0 Supreme(Cal) 315
Attempting to use Section 253 for revival is misguided—it's strictly for criminal discharges, not restoring a company's operational status. V. R. Alexander VS R. W. Connor - 1916 0 Supreme(Cal) 315
True revival mechanisms lie in Sections 391 to 394 of the Companies Act, 1956 (corresponding provisions exist in the 2013 Act). These empower courts to sanction schemes of compromise, arrangement, or reconstruction, often as alternatives to winding up. MADHU TEXTILES AHMEDABAD LTD VS OFFICIAL LIQUIDATOR - 2005 0 Supreme(Guj) 306
Judicial precedents reinforce this:- In a case involving a scheme under Sections 391-394 and 466, the court recalled a winding-up order after creditor settlements and a bona fide revival plan, emphasizing public interest and commercial morality. Kirit Morzaria, S/o C.G. Morzaria vs Company Application No.70 of 2025 In Company Petition No.131 of 1988 - 2025 Supreme(Online)(Kar) 21672- Another application for a revival scheme with new management (manufacturing furniture and carpets) was sanctioned after requisite majority approvals, with the winding-up order recalled. RE-M/S BHARAT CARPETS LTD. VS . - 2018 Supreme(Del) 1967- However, schemes require approval from all indispensable classes: contributories, secured/unsecured creditors. Lack thereof led to dismissal in one instance. AOP (India) Pvt. Ltd. Workers Union VS Official Liquidator - 2010 Supreme(Cal) 248
These sections provide a structured path: file an application, hold meetings, secure majorities (typically 75% value), and obtain court sanction. Rajendra Kumar C., Morzaria, S/o C. G. Morzaria vs Kirit Morzaria S/o C. G. Morzaria - 2025 Supreme(Online)(Kar) 37754
For companies struck off the register (e.g., for non-filing or non-compliance), Section 252 offers restoration. This is distinct from general revival but crucial for dormant entities.
Process: Appeal to NCLT within 20 years, demonstrate cause, pay costs, and comply with filings like Section 10A subscriptions.
Pre-2016, the Board for Industrial and Financial Reconstruction (BIFR) handled sick industrial companies under SICA, 1985. Post-SICA repeal, remnants appear in unnotified Chapter 19 (Sections 253-269) of Companies Act, 2013, mirroring old revival provisions—but these are not in force. GHANSHYAM SARDA VS SHIV SHANKAR TRADING CO. - 2014 8 Supreme 4ARCELORMITTAL INDIA PRIVATE LIMITED VS SATISH KUMAR GUPTA - 2018 Supreme(SC) 965STATE BANK OF INDIA VS V. RAMAKRISHNAN - 2018 Supreme(SC) 805
SARFAESI Act often interacts, prevailing over older laws for secured creditors. Madras Petrochem Ltd. VS BIFR - 2016 1 Supreme 529
Recommendations:1. Assess status: Struck-off? Use Section 252. In liquidation? Propose scheme under 391-394.2. Gather consents, settle dues.3. File with NCLT/High Court, seek interim relief.4. Comply post-restoration to avoid re-strike-off.
Disclaimer: This is general information based on precedents and not specific legal advice. Laws evolve (e.g., 1956 vs. 2013 Act), so seek tailored counsel from a corporate lawyer.
For more on corporate compliance, stay tuned!
#CompanyRevival #CompaniesAct #CorporateLaw
(viii) The Applicant is also aggrieved by the act of striking off the name of the Company from the Register of Companies by the Respondent without following the due procedure of law as provided under Section 248(1) of the Companies Act, 2013, read with sub-rule 2 ... of the Company from the register of companies. ... referred to as ‘Act’) read with Rule 87A of the National Company Law Tribunal Rules, 2016 (hereinafter referred to a....
The company application was filed by the respondent No.1 under the provisions of Section 466 read with Sections 391 to 394 of the Companies Act, 1956, Act read with Rules 6 and 9 of the Companies (Court) Rules, 1959, Rules with a prayer to sanction the scheme of arrangement ... In this view of the matter, the aforesaid judgment of the learned Company Judge has to be considered. We find from perusal of the judgment in NGEF Ltd. ... Though it is open for the C....
Companies Act, 2013 . ... the status of the appellant Company from “struck off” to “active” and take such further action against the Appellant Company with respect to late payment of subscription as provided under section 10A of the Companies act, 2013 and any other violations of statutory provisions if any detected after revival ... While, going through the section 252(3) of the Companies Act, it is found that the instant provisio....
Companies Act, 1956 with the Registrar of Companies, Bengaluru and copy of the Memorandum of Association and the Articles of Association is produced at Annexure-A. ... of the company and restoring the assets of the company to its management under the provisions of the Companies Act, while staying the winding up process permanently at this stage subject to the compliance of the solemn undertaking given by the State before this court.
We find that under 6 sub-section (1) of Section 252 of the Companies Act, 2013 any person aggrieved may file an appeal against an order of the Registrar within a period of three years before this Tribunal and whereas under sub-section (3) of Section 252 of the Companies Act, 2013 only a company, member ... tribunal may please issue directions to the applicant to file all the pending Annual Returns and Balance Sheets of the subject Company with the Re....
The order also required the views of the unsecured creditors of the company (in liquidation) to be ascertained at a meeting to be held under Section 391 (1) of the Companies Act. ... An application under Section 466 of the Companies Act, as every beginner at a company law class is aware, has to proceed by accepting the order of winding up and without questioning it. ... If the assets of a company (in liquidation) are sold, Sections 529A and Section 530 of the #HL_STAR....
The Appellant Company has maintained all necessary statutory registers and records as prescribed under Companies Act, 1956 and Companies Act, 2013. ... Considering the facts of the case we find no error on the part of ROC in striking off the name of the Company from the register of companies. ... However, if the Petitioner proves that it is carrying on business and this Hon’ble Tribunal is inclined to allow revival of the #HL_START....
As submitted by the Appellant, the struck off company is a private limited company, incorporated on 14.10.1991 under the provisions of the Companies Act, 1956 with CIN: U45300DL1991PTC046023. ... The present appeal is filed by the authorized representative of M/s Emess Promoters Private Limited (Appellant Company) under Section 252(3) of the Companies Act, 2013, against the Registrar of Companies. ... The removal of the company’s name was carried out....
The Applicant emphasizes that Section 252(3) of the Act aims to provide an opportunity for revival of struck-off companies in the interest of justice, allowing them to continue their business activities. ... Accordingly, in the exercise of powers conferred under Section 252 of the Companies Act, 2013, the Company Application is allowed on the following terms:- (i) The Registrar of Companies is directed to restore the name of the Company in the Regist....
The High Court directed the Department to first seek revival of the company under Section 252 of the Companies Act before initiating proceedings under the Income Tax Act. 8. ... No. 11841 of 2022, by order dated 03.10.2023, set aside the same, with a categorical direction that the Department should first take recourse to Section 252 of the Companies Act and seek revival of the company before proceeding with tax assessments. ... furt....
Conspicuous by its absence is a provision akin to Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 in the 2013 Act. Thus, the Companies Amendment Act, 2002 and the SICA Repeal Act formed part of one legislative scheme, and neither has yet been brought into force. In fact, even the Companies Act, 2013, which repeals the Companies Act, 1956, contains Chapter 19 consisting of Sections 253 to 269 dealing with revival and rehabilitation of sick companies along the lines of Sections 424-A to 424-H of the amended Companies Act, 1956. However, this Chap....
In fact, even the Companies Act, 2013, which repeals the Companies Act, 1956, contains Chapter 19 consisting of Sections 253 to 269 dealing with revival and rehabilitation of sick companies along the lines of Sections 424-A to 424-H of the amended Companies Act, 1956. Thus, the Companies Amendment Act, 2002 and the SICA Repeal Act formed part of one legislative scheme, and neither has yet been brought into force. However, this Chapter is also yet to be brought into force. Conspicuous by its absence is a provision akin to Section 22(1) of the Sick Industrial Companies (Speci....
1. This application is filed under Sections 391 to 394 of the Companies Act, 1956 seeking sanction of the Scheme of Revival.
Conspicuous by its absence is a provision akin to section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 in the 2013 Act. In fact, even the Companies Act, 2013, which repeals the Companies Act, 1956, contains Chapter 19 consisting of sections 253 to 269 dealing with revival and rehabilitation of sick companies along the lines of sections 424-A to 424-H of the amended Companies Act, 1956. However, this Chapter is also yet to be brought into force. Thus, the Companies Amendment Act of 2002 and the SICA Repeal Act formed part of one legislative scheme, a....
In fact, even the Companies Act, 2013, which repeals the Companies Act, 1956, contains Chapter 19 consisting of Sections 253 to 269 dealing with revival and rehabilitation of sick companies along the lines of Sections 424A to 424H of the amended Companies Act, 1956. Conspicuous by its absence is a provision akin to Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 in the 2013 Act. Thus, the Companies Amendment Act of 2002 and the SICA Repeal Act formed part of one legislative scheme, and neither has yet been brought into force. However, this Chap....
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