Registrar of Companies Gujrat Vs Maharshi Management Services Pvt Ltd & Ors. (NCLT Ahmedabad)
No condonation of 4215 days’ delay in ROC’s Section 252(1) appeal for restoration when alleged pending bank charge did not exist and delay remained unexplained
1. Facts of the Case
- The Strike-Off: Maharshi Management Services Pvt. Ltd. was struck off from the Register of Companies by the Registrar of Companies (ROC) on August 31, 2007, due to its failure to file statutory returns for more than two consecutive years.
- The Appeal & Delay: The ROC filed a restoration appeal under Section 252(1) of the Companies Act, 2013, seeking to restore the company. However, the appeal was filed with an extraordinary delay of 4,215 days (well beyond the standard 3-year limitation period).
- ROC’s Justification: The ROC argued that the strike-off was “inadvertent” because the company’s master data showed “open” (subsisting) charges created in favor of the Bank of India back in 1991. The ROC claimed they only found out about this mistake on December 14, 2021, via a communication from the Regional Director.
- The Bank’s Counter-Claim: Bank of India opposed the application, stating that all outstanding dues had been settled by the borrower more than 30 years ago. A “No Due Certificate” was formally issued, and the bank noted that it only retains records for 8 years post-closure under its policy. The bank added that updating the ROC master data to reflect the removal of charges was the responsibility of the borrower, not the bank.
2. Issues Involved
1. Whether the ROC made out a “sufficient cause” to condone the massive delay of 4,215 days in filing the restoration appeal.
2. Whether active/open charges truly subsisted against the company to justify its restoration for the protection of secured creditors.
3. Decision of the Tribunal
The NCLT Ahmedabad Bench (comprising Smt. Chitra Ram Hankare, Judicial Member, and Shri Velamur Govindan Venkata Chalapathy, Technical Member) rejected the ROC’s application for condonation of delay (IA No. 66 of 2023).
Key Observations:
Paid content
Become a Premium Member, or log in if you are already a Premium member.
