When the company does not initiate its business within a year of its establishment or those who have not been carrying any business or function for over 2 financial years or does not submit yearly returns, the registrar by its own may put the name of the company into a strike off.
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Well, the word strike-off refers to the elimination of the Company’s name from the Register of Companies sustained by the Registrar of Companies.
It is more similar to Company closure and the Company will not remain in existence post being Struck Off and can’t do any function afterwards.
The Registrar of Companies in the financial year 2017-18 struck off numerous Companies as per the provisions of Section 248(1) of the Companies Act, 2013 in its first ditch and as a result, initiated its second drive to strike-off lakhs of Companies again in August 2018.
Any person who got impacted by the order of a company strike off may file a petition for the revival of the strike off the company to the NCLT within a span of 3 years from the date of the registrar’s order.
There would be a burden of proof on the person applying for the revival and if the NCLT is gratified with the grounds demonstrated by the concerned person and is of the opinion that the elimination of the company from the companies’ register is not justified, it may order the return of the name of the company in the companies’ register.
Persons who can file a petition in NCLT to revive the company are the following:
The NCLT allows the revival of the struck off company on following grounds:
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