The Registrar of Companies in the financial year 2017-18 struck off many Companies in accordance with the provisions of the Section 248(1) of the Companies Act, 2013 in its first trench and consequently, launched its second drive to strike off lakhs of Companies again in August, 2018. In this article, we shall study that what is actually the meaning of strike off, why these Company had been struck off and lastly, the procedure for revival of these Companies.
To start with, let’s understand as to what does exactly the word “strike off” means. In accordance with the provisions of the Companies Act, 2013 strike off means temporary closure of Companies that is an alternative to winding up of the Company where the Company has the option to get the Company revived for a period of twenty years from the date of strike off.
Page Contents
1. Which Companies can struck off:
- The Companies which have failed to carry on the operations within one year of its incorporation.
- The Companies which are not carrying on any operations or business for two financial years.
- In case the subscribers to the memorandum has not paid the subscription money and a declaration to this effect has not been filed within 180 days.
- The Company is not carrying on any business as revealed from the physical verification of its registered office.
2. Who can make application for striking of the Company:
- The Company.
- The Registrar of Company have respective jurisdiction.
3. Who can make an appeal to Tribunal for revival in case ROC struck off the Company
- Company itself
- Member
- Creditor
- Workman
Provided that the application shall be made before the expiry of twenty years from the date of publication in the Official Gazette of the notice w.r.t. striking off the name of the Company.
4. Procedure to appeal before National Company Law Tribunal (NCLT):
- A appeal for revival of Companies shall be made in Form No. NCLT 9 to the respective Tribunal having jurisdiction over the concerned Registrar along with a demand draft of Rs. 1000/- in favor of “Pay and Accounts Officer, Ministry of Corporate Affairs”. At present, there are 11 NCLT bench the respective jurisdiction can be accessed at the following link:
https://nclt.gov.in/content/national-company-law-tribunal-benches
- A copy of the appeal or application shall be served on the Registrar and other persons as the NCLT may direct (eg: Income tax).
- A hearing before the Tribunal shall be scheduled.
- Where the Tribunal makes an order for restoration of name of the Company, it may direct:
- to deliver to the ROC a copy of the order.
- file pending financial statements and annual returns.
- pay to the ROC his requisite costs
Further, the application to restore the name of the Company shall be filed with the following attachments exhibiting that the Company was actually in operations (recommendatory):
- Available signed balance sheets.
- Latest bank statements
- CTC of Board Minutes/AGM Minutes
- Copy of acknowledgments paid w.r.t TDS/ITR/PF/Gratuity by the Company.
- Copy of latest invoices/sales bills.
- Any other evidence/govt. document as may be given by the Company that it is a going concern as on date.
{The author is a Company Secretary in Practice and can be reached at (M) 9999952595 and (E) cskajalgoyal@gmail.com}
Author Bio
