Steps for revival of a company under Companies Act, 2013

Steps for revival of a company under Companies Act, 2013

Section 248 has declared several steps through which restoration of dissolved companies name is possible. When companies are dissolved, it is possible to re-establish it according to the laws laid on the Register of Companies by National Company Law Tribunal order. The application to restart a company can be applied by the member of the company, the creditor, or even an employee of the company. Such an application must be completed prior to the termination of 20 years of the company’s removal of the name, published in the notice in Official Gazette. The Registrar of Companies is entitled with the below-mentioned powers required, to remove name of company from the register of companies.

Under any circumstances, if in the duration of one year, a company fails to start after its incorporation, then it is eligible for removal. Under any circumstances, if for two continuous financial years, the company is not carrying on any business or operation and also and has not applied for a status of a dormant company, then it is eligible for removal.

Whenever any of the above-mentioned cases occur, the Registrar may confiscate the name of the company from the register of companies. For this, a notice is forwarded to the directors of the company along with the company. Furthermore, the notice would disclose the aim to remove the title of the company from the register of companies and demand the company to send statements as well as a photocopy of the applicable documents in the duration of thirty days from the issued notice.

What is the process to revive a company?

As per as the rules laid in Section 252(3) and 87A of National Company Law Tribunal (Amendment) Rules, 2017, an application can be filed for reinstatement of Company removed from the record of the ROC .The provisions of Section 252(3) of Companies Act, 2013 dictate that the company, creditor, workmen or any other member are entitled to file an application in National Company Law Tribunal, for the purpose of for re-establishment of Company name in the records of the ROC.

The process to revive a struck off company is:-

1. Firstly, a preparation of petition as per Rule 87A (1) is mandatory. The petition as per rules dictated in Section 252(3) can be prepared for the re-establishment of the removed It can be filed with the Tribunal (NCLT) in Form No. NCLT-9.
2. Secondly, the submission of a petition with ROC as per Rule 87A (2) has to be done. The duplicate copy of that application can be provided to the Registrar of Companies or to individuals prescribed by the Tribunal. This shall be done under 14 days prior to the date set for the trial of the application.
3. Thirdly, there is a list of documents that need to be enclosed with the application in NCLT-9. The Annexure B of NCLT Rules, 2016 enlist the documents required by NCLT during filing of the application. There are two sections mentioning the documents to be filed with the application. In addition, there is an Annexure, which does not mention any separate list of documents for filing of an application with NCLT u/s 252. In case of that, Point No. 13 of Annexure B states that “Wherever no document is prescribed to be attached with the application or petition, documents, as mentioned below, may be attached, as applicable.”
4. Any document or other confirmation to sustain the statement made in the application or request or petition and should be rationally open to the petitioner.
5. An affidavit should be enclosed to validate the petition.
6. There should be an affirmation concerning the payment of a fee of Rs.2,500.
7. The Memorandum of appearance with a duplicate of the Board Resolution or the vakalatnama, whichever suitable shall be present.
8. Three photocopies of the petition shall be provided.
9. Any supporting documents as demanded.
10. Fourthly, the hearing by Tribunal will be arranged as per Rule 87A (3).The Tribunal shall listen to the queries of Petitioner as well as the Respondent (ROC). Furthermore, notes will be taken on the basis of observations. In addition, any objections when received will be taken into consideration. When both parties are heard, and if the Tribunal is satisfied, the order to restore the name of the company in the record of the ROC will be given.
11. The fifth step includes the directions provided the Tribunal as per Rule 87A (4).
12. After the order is issued by the Tribunal to restore the name of a company in the register of companies, it shall direct.
13. The applicant to present within 30 days from the issued order, a certified copy to the Registrar of Companies.
14. Thereafter, the Registrar of Companies shall publish the order in the Official Gazette in the official name and seal.
15. The applicant is liable to pay the Registrar of Companies his fees unless the Tribunal says otherwise.
16. The company has to file all the awaiting financial statements along with the annual returns with the Registrar. Furthermore, all the requirements of the Companies Act, 2013 and rules have to be complied with, as suggested by the Tribunal.
17. The sixth step involves the filing of order with ROC. Within a period of 30 days from the date of the issued order, the Company is eligible to file the copy of the order with Registrar of the Company.
18. The seventh step involves publication of the order in Gazette. The Registrar of Companies shall in his official name and seal issue the command in the Official Gazette.
19. The eighth step includes publication of order in gazette. All the financial statements and annual returns with the Registrar can be filed and the requirements of the Companies Act, 2013 shall be complied with.

In conclusion, “steps for revival of a company under Companies Act, 2013”, have to be understood properly. The steps are easy to follow and in order to remove the status of “a strike off”; the rules laid by NCLT have to be followed strictly.