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2017 (11) TMI 1337 - Tri - Companies LawPower of Registrar to strike defunct company off register - non enhancement of paid capital by assessee private comoany as per section 3 - Held that:- It is evident from the perusal of sub-section 3 of Section 3 that every private company with a paid-up capital of less than one lakh rupees was required to enhance its paid-up capital to one lakh rupees within a period of two years from the commencement of Companies (Amendment) Act, 2000. The aforesaid amendment came into force w.e.f. 13.12.2000. The enhancement by the petitioner company to one lakh rupees or more was permissible upto 13.12.2002. There is no averment in the petition that any attempt was made for enhancement of its share capital which continues to be at ₹ 300 with 30 equity shares of ₹ 10 each. The consequence of not enhancing the paid-up capital are provided in sub section 5 of Section 3 namely, that such a company shall be deemed to be a ‘defunct company’ within the meaning of section 560 and the Registrar is under a legal obligation to struck off from its register the name of such company. The objection taken by the Registrar is well founded and deserves to be upheld. The order passed by the Registrar of Companies is thus sustainable in the eyes of law and the petitioner No. 1-company is deemed to be a defunct company. In no case the petitioner No. 1-company can secure the relief it has prayed for. Accordingly, the Registrar of Companies has passed a valid order which is beyond pale of challenge.
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