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2022 (6) TMI 171 - AT - Companies LawSeeking restoration of the name of the Company - it is stated that Appellant Company has filed its Financial Statement till 31st March, 2015 only due to which the Respondent had reasonable cause to believe that the Appellant company was not in operation - also no ‘Income Tax Return’ annexed - HELD THAT:- The company is liable to pay back all the liabilities and also to ensure the recovery of its money from MVDA amounting to Rs. 71 lakh. It is very much clear that the Appellant Company has filed the ‘Balance Sheet’ till 31.03.2015. What it has committed a mistake that the Company has not filed the ‘Balance Sheet’ for Financial Year 2015-16, 2016-17 till notice was issued in Form STK-1 on 25.05.2018 by the Registrar for Removal the name of the Company from Registrar of Companies. Simply non-filing of Financial Statement cannot be a ground for striking off the name of the company, if the company is otherwise in the business or operation of the Company. For a Real Estate Company, it is not possible always to generate the income on year to year basis. It is very much clear that this company applied against the bid of MVDA and it could not succeed. It is also very much clear that this company has given an advance of Rs. 71 lakh to the MVDA as the same is reflected in the Balance Sheet - The ROC is also dissatisfied only on the limited ground that the Appellant company has not filed their Balance Sheet and hence have assumed that they are not doing any business or operation. This power, in any case, always vest with the ROC to take appropriate measures under Section 248, if the RoC has the reasonable cause to believe certain events as enumerated in Section 248 (1) of the Act. The RoC is empowered to review this Company even after few years and they can take appropriate measures in accordance with the provisions of the Act. So far as the present case of the Appellant is concerned, simply, because of the failure to file a Financial Statement and returns that too only of the two years should not result the company into striking off their name. These are small companies, business is erratic. This company is having the share capital hardly Rs.1 lakh as it looks from their Balance Sheet. It has given advance to MVDA of Rs. 71 lakhs naturally by obtaining loans and advances from the Directors and others so that at a later stage they can go for the Real Estate Business. It is deemed fit and proper to restore the name of the company under the umbrella of grounds “Just” to restore the name of the company - the Appellant shall pay costs of Rs. 4,00,000/- to the Registrar of Companies, New Delhi within 30 days - appeal allowed.
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