NCLT restore name of Striked-Off Company subject to Payment of Cost

Striking off the name of a company and restoration of a struck-off company’s name by NCLT on payment of the cost.

Sections 248 to 252 of the Companies Act, 2013 (the Act) provide the procedure for striking off company names by the ROC or voluntarily by the company. Striking off a company’s name means closing a defunct company in a faster manner and is the simplest way to dissolve a company.

Striking off the name of a company is an alternative mechanism for closing the operations of the company. The Registrar of Companies (ROC) can issue a notice to strike off the company name from the Register of Companies for certain reasons. The company can also apply for the ROC to strike off its name from the Register of Companies.

Any individual aggrieved by the ROC order notifying that a company is dissolved under Section 248 of the Act can file an appeal to the NCLT within three years from the ROC order date.

NCLT passes an order to restore the company name in the Registrar of Companies if it believes that the removal of the company name is not justified due to the absence of the grounds on which the ROC passed the order. The tribunal should give a reasonable opportunity to the ROC, the company, and all the concerned persons to make representations and be heard.

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