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2021 (1) TMI 651 - Tri - Companies LawSeeking revival of the Company with minimum or nil penalty for the delay and to waive off the additional fee payable an account of filing of Annual Returns/Reports with the ROC, Karnataka till FY 2018-19 - HELD THAT:- It is not in dispute that the Registrar of Companies is conferred with power U/s. 248(1) to strike off the Company, if the Company has failed to commence its business within one year of its incorporation or a Company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any Application within such period for obtaining the status of a dormant Company U/s. 455. However, Section 248(6) states that the Registrar of Companies, before finally striking off Company, has to satisfy himself that sufficient provision has been made for the realization of all amounts due to the Company and for the payment or discharge of its liabilities and obligations by the Company within a reasonable time, and, if necessary, obtain necessary undertakings from the Managing Director, Director or other persons in charge of the management of the Company. Though the impugned order striking off the Company was in accordance with law, the Tribunal has to take into consideration of bona fide contentions of Petitioner seeking to restore the name of Company, by taking a lenient view of the issue in the interest of justice and ease of doing business, instead of rigidly interpreting the law on the issue. In the instant case the Promoters and Directors being involved in the continuous development in the field of fire-fighting equipment were not able to concentrate on the Company's compliances part. Unless the revival order is made the Company and the Promoters will suffer irreparable loss and no purpose would be served in preventing it from continuing its business, since in the FY 2018-19 it had a Turnover of ₹ 54.32 lakh. This would not be in the interest of any of the stakeholders. It is also not in dispute that the instant Company Petition is filed in accordance with law; there are no investigations pending against the Company. The Respondent has not opposed the Petition; and left the issue to the Tribunal to consider the case subject to terms and conditions. Therefore, the interest of justice and fairness would be met if the name of Company is restored as prayed for subject to conditions imposed.
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