2009 (10) TMI 525 - HC - Companies Law

Restoration of company name in the register of the Companies - Held that - Having considered the averments made by the petitioner in the petition and also the arguments of learned counsel for the petitioner and after going through the provisions of section 560(6) of the Act it is satisfied that the petitioner has made out a case for restoration of its name in the register of the companies. Appeal allowed.The name of petitioner-company is directed to be restored by the respondent in the register of companies treating as if its name was never been struck off from the rolls of the register.

Summary

Issues:
Restoration of company name in the register of companies under section 560(6) of the Companies Act, 1956.

Analysis:
The petitioner-company sought direction under section 560(6) of the Companies Act, 1956, to restore its name in the register of companies and other consequential orders. The company was incorporated with specific business objectives related to agriculture and agro-based products. Despite the company being in operation and having a commercial presence, it discovered its name was struck off the register when attempting to file annual documents in October 2008. The petitioner emphasized the absence of creditors, operational activities as per audited balance sheets, and readiness of promoter directors to infuse funds for full-fledged business operations. The petitioner argued that shareholders would suffer financially if the company's name was not restored, with no prejudice to any party. After evaluating the petition and arguments, the court found merit in the petitioner's case for restoration under section 560(6) of the Act.

The court noted the petitioner's compliance with requirements and allowed the petition, directing the respondent to restore the company's name in the register as if it was never struck off. The petitioner was instructed to provide a copy of the order to the Registrar for further proceedings in accordance with the Act and Rules. No costs were awarded in the judgment.