Soft Pictures Pvt. Ltd. has been struck off by the Registrar of Companies, Chennai and notice thereof was published in the Official Gazette. Brillant Industries Ltd. had some dues from Soft Pictures Pvt. Ltd and it had f
CS Professional · Advanced Company Law and Practice · PYQS · June 2018
Soft Pictures Pvt. Ltd. has been struck off by the Registrar of Companies, Chennai and notice thereof was published in the Official Gazette. Brillant Industries Ltd. had some dues from Soft Pictures Pvt. Ltd and it had filed a petition to Court for winding up of the Company. Decide if Soft Pictures Pvt Ltd being already struck off by the Registrar can be wound up under the Companies Act, 2013.
Answer & Explanation:
The facts of the question are similar to the one discussed in Real Time Interactive Media Pvt. Ltd. vs Metro Mumbai Infra Developer Pvt. Ltd. in the High Court of Judicature at Mumbai ordinary original Civil jurisdiction Company Petition no, 382 of 2015. The issue to be considered is whether the company which is struck off the register of companies under Section 248(1) of the Companies Act 2013 can be wound up. As per section 250 where a company stands dissolved under section 248, it shall on and from the date mentioned in the notice under subsection (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company. Section 248 (1) empowers the Registrar to remove the name of company from the register of Companies but before he does that he shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of the relevant documents, if any, within a period of thirty days from the date of the notice. At the expiry of the time mentioned in the notice, the Registrar may, unless cause to the contrary is shown by the company, strike off its name from the register of companies, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the company shall stand dissolved. At the same time, nothing in Section 248 shall affect the power of the Court to wind up a company the name of which has been struck off from the register of companies. The effect of company notified as dissolved is that the company shall on and from the date mentioned in the notice under subsection (5) of Section 248 cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company. Therefore, it is clear that just because the name of the company is struck off the register under Section 248 of the Companies Act, 2013, that will not come in the way of the Court to pass an order winding up of company. In addition to the above, Section 252(3) of the Companies Act, 2013 provides that, if a company, or any member or creditor or workman thereof feels aggrieved by the company having its name struck off from the register of companies, the Tribunal on an application made by the company, member, creditor or workman before the expiry of twenty years from the publication in the Official Gazette of the notice under sub-section (5) of section 248 may, if satisfied that the company was, at the time of its name being struck off, carrying on business or in operation or otherwise it is just that the name of the company be restored to the register of companies, order the name of the company to be restored to the register of companies, and the Tribunal may, by the order, give such other directions and make such provisions as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off from the register of companies. Thus, in the present case, Soft Pictures Pvt. Ltd. has been struck off by the Registrar of Companies, Chennai and notice thereof was published in the Official Gazette. Brilliant Industries Ltd. had some dues from Soft Pictures Pvt. Ltd and filed a petition to Court for winding up of the company. Soft Pictures Pvt. Ltd., being already struck off by the Registrar, can be wound up under Companies Act, 2013.
Topics: Removal of Names of Companies and Winding Up
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