Revival of Company from Strike Off | Procedure | NCLT | Application |

Companies have been receiving notices for Strike off from their respective ROC ( Registrar of Companies), If you are a stakeholder of one of such Companies who has received such Notice and looking for a solution, then there is Power in our Companies Act, 2013, through which you can apply for the Revival of your Company by filing an application to Honourable NCLT, But before moving forward let’s understand what does exactly the word “strike off” means. In a layman’s language, “strike off means” temporary closure of Companies or to remove the name from the Register of Companies as maintained with the Registrar of Companies. 

REGULATORY PROVISIONS: Section 252 of the Companies Act, 2013 read with Rule 87A of the National Company Law Tribunal (Amendment) Rules, 2017.

GROUNDS ON WHICH ROC CAN STRIKE OFF COMPANIES:

1. The Companies which have failed to carry on the operations within one year of their incorporation.

2. The Companies who have not filed e-Forms AOC-4 and MGT-7 during the preceding two financial years with their respective Roc.

3. In case the subscribers to the memorandum have not paid the subscription money and a declaration to this effect has not been filed (eForm 20A) within 180 days.

4. The Company is not carrying on any business as revealed from the physical verification of its registered office.

However, usually, the ROC sends Strike off Notices due to the non-filing of e-Forms AOC-4 and MGT-7 during the preceding two financial years only.

PROCEDURE TO APPEAL BEFORE NCLT AGAINST THE ORDER OF ROC:-

1. Application to Tribunal in Form NCLT-9 within a period of 3 years from the date of the order of the Registrar for strike off alongwith

(a) Notice of admission in Form NCLT-12

(b) Affidavit verifying the petition in Form NCLT-16

(c) Bank draft evidencing the payment of application fee

(d) Memorandum of appearance in Form NCLT-12 or the me cuted Vakalatnama, as the case may be

2. If the Tribunal is of the opinion that the removal of the name of the company from the register of companies is not justified in view of the absence of any of the grounds on which the order was passed by the Registrar, it may order restoration of the name of the company in the register of companies

3. Filing of order of NCLT in Form INC-28 within 30 days of the date of order along with a copy of order and fees.

RESTORATION OF THE NAME CAN BE ORDERED ON THE FOLLOWING GROUNDS BY THE NCLT :-

• In case the Company is having machinery, equipments and any immovable property.
• In case there are employees working in the Company.
• In case there are active transactions in the bank statements of the Company evidencing that the  Company is still carrying out its business activities.
• In case the Company is renewing any license on an annual basis, which is required to be taken like FSSAI license, Excise, etc.
• Any other documents which can prove that Company had an intent to carry out its business operations.

The article has been prepared considering the relevant Guidelines/ Circulars/ Notifications/ Provisions of the Companies Act, 2013, the rules made there under & The Companies Act, 2013. Readers are requested to cross-check the provisions before acting upon the same. The author will not be liable for any damages or penalties caused.