{"id":841,"date":"2019-07-05T13:16:58","date_gmt":"2019-07-05T13:16:58","guid":{"rendered":"https:\/\/lawyerinc.net\/learning\/?p=841"},"modified":"2019-07-05T13:17:01","modified_gmt":"2019-07-05T13:17:01","slug":"how-to-reactivate-strike-off-company","status":"publish","type":"post","link":"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/","title":{"rendered":"How to Reactivate Strike-Off Company?"},"content":{"rendered":"\n<p>The Ministry of Corporate Affairs (MCA) is taking strict actions against shell companies and companies which do not file their financial statements and annual returns regularly with ROC (Registrar of companies). Last year alone, it struck off lakhs of companies under section 248(1) of Companies Act, 2013. The government is still cleaning up the corporate field. But it has come up with a procedure to <a href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\">reactivate strike off <\/a><a href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"company (opens in a new tab)\">company<\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Strike_off_Company_Under_Companies_Act_2013\" title=\"Strike off Company Under Companies Act, 2013\">Strike off Company Under Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#What_are_the_reasons_for_strike_off_company\" title=\"What are the reasons for strike off company?\">What are the reasons for strike off company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Who_can_file_an_Application_for_Revival\" title=\"Who can file an Application for Revival?\">Who can file an Application for Revival?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Procedure_for_the_revival_of_strike_off_companies_as_per_Companies_Act_2013\" title=\"Procedure for the revival of strike off companies as per Companies Act,\n2013\">Procedure for the revival of strike off companies as per Companies Act,\n2013<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#1_Preparation_filing_application_under_NCLT\" title=\"1. Preparation &amp; filing application under NCLT\">1. Preparation &amp; filing application under NCLT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#2_Rule_87A2_Submission_of_the_petition_with_ROC\" title=\"2. Rule 87A(2) : Submission of the petition with ROC\">2. Rule 87A(2) : Submission of the petition with ROC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#3_Attachment_of_documents_list_with_application_in_NCLT-9\" title=\"3. Attachment of documents list with application in NCLT-9\">3. Attachment of documents list with application in NCLT-9<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#4_Hearing_of_the_Petition_by_NCLT_Rule_87A_3\" title=\"4. Hearing of the Petition by NCLT: Rule 87A (3)\">4. Hearing of the Petition by NCLT: Rule 87A (3)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#5_File_NCLT_order_with_ROC\" title=\"5. File NCLT order with ROC\">5. File NCLT order with ROC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#6_Directions_by_NCLT_under_Rule_87A4\" title=\"6. Directions by NCLT under Rule 87A(4)\">6. Directions by NCLT under Rule 87A(4)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#7_Publication_of_order_in_the_official_gazette\" title=\"7. Publication of order in the official gazette\">7. Publication of order in the official gazette<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Role_of_ROC_in_striking_off_company\" title=\"Role of ROC in striking off company\">Role of ROC in striking off company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Liability_of_company_after_strike_off\" title=\"Liability of company after strike off\">Liability of company after strike off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A company is struck off when there is the removal of the name of the company by ROC. Under Section 248 of The Companies Act, 2013, the Registrar can strike off company which has defaulted or is defunct, from the Register of companies. This dissolved company can revive under the Companies Act, 2013, through an order of National Company Law Tribunal (NCLT). <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strike_off_Company_Under_Companies_Act_2013\"><\/span><strong>Strike off Company Under Companies Act, 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Section 248 talks about the power of ROC to remove the name of the company from the Register of companies. <\/li><li>The company can appeal to the NCLT under section 252.<\/li><li>The Companies (Removal of Name of Companies from the Register of Companies) Rules, 2016 also deal with strike off.<\/li><li>Rule 87A of the NCLT (Amendment) Rules, 2017 and NCLT Rules, 2016 additionally address struck off.<\/li><li>In the case of striking off defunct companies, section 248 of Companies Act 2013 comes into picture.&nbsp; However, restoration can be done under section 252 of <a href=\"http:\/\/www.mca.gov.in\/MinistryV2\/companiesact2013.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"The Companies Act 2013 (opens in a new tab)\">The Companies Act 2013<\/a>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_reasons_for_strike_off_company\"><\/span><strong>What are the reasons for strike off company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several reasons for\nstriking off a company, and following are a few cases where a company is struck\noff- <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If the company fails to start a business within one\nyear of incorporation of the company.<\/li><li>Failure to carry on the business for two preceding\nfinancial years.<\/li><li>If the company does not file the financial statements\nand annual returns for a period of 3 years continuously.<\/li><li>When the directors fail in filing the Form DIR-8 on\ntime.<\/li><li>Non-compliance with relevant provisions of Companies\nAct and other legal framework. <\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"728\" height=\"90\" src=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Legal-Advice-17.jpg\" alt=\"Reactivate Strike-Off Company\" class=\"wp-image-847\" srcset=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Legal-Advice-17.jpg 728w, https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Legal-Advice-17-300x37.jpg 300w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_file_an_Application_for_Revival\"><\/span><strong>Who can file an Application for Revival?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Screenshot-68.png\" alt=\"Application for reactivating strike off companies can be filed by company or member, etc.\" class=\"wp-image-843\" width=\"324\" height=\"224\" srcset=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Screenshot-68.png 448w, https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Screenshot-68-300x208.png 300w\" sizes=\"auto, (max-width: 324px) 100vw, 324px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_the_revival_of_strike_off_companies_as_per_Companies_Act_2013\"><\/span><strong>Procedure for the revival of strike off companies as per Companies Act,\n2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a person or company is not satisfied with the order of the Registrar for strike off company under section 248, it can file an appeal to NCLT. This appeal can be filed within 3 years from the date of order.\u00a0 Following is the procedure for the <a href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"revival of strike-off of companies (opens in a new tab)\">revival of strike-off of companies<\/a>&#8211;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Preparation_filing_application_under_NCLT\"><\/span><strong>1. Preparation &amp; filing application under NCLT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The applicant has to file an\napplication for restoring the company whose name was struck off from the\nRegister of the company. It can be done under section 252(3) read with rule 87A\nof National Company Law Tribunal (Amendment) Rules, 2017. Furthermore, a\npetition for restoration can be filed with NCLT within 3 years from the date of\nthe strike-off.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Rule_87A2_Submission_of_the_petition_with_ROC\"><\/span><strong>2. Rule 87A(2) : Submission of the petition with ROC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Copy of the application has to be\nserved on the ROC and other people as per the NCLT directions either by post or\nhand not less than 14 days from hearing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Attachment_of_documents_list_with_application_in_NCLT-9\"><\/span><strong>3. Attachment of documents list with application in NCLT-9<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The applicant has to file a list of\ndocuments under Annexure B of the NCLT Rules, 2016 required to be filed with\nNCLT while filing the application.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Hearing_of_the_Petition_by_NCLT_Rule_87A_3\"><\/span><strong>4. Hearing of the Petition by NCLT: Rule 87A (3)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The NCLT has to hear both the\nsides. After the hearing, if satisfied can restore the name of the company in\nthe record of ROC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_File_NCLT_order_with_ROC\"><\/span><strong>5. File NCLT order with ROC <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After the Tribunal makes an order\nfor restoration of the company after strike off, it will direct the appellant\nto deliver a certified copy of the order to ROC within 30 days from order. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Directions_by_NCLT_under_Rule_87A4\"><\/span><strong>6. Directions by NCLT under Rule 87A(4)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After the delivery, ROC has to\npublish the order in the official gazette. The appellant has to pay the\nRegistrar as per the directions of the Tribunal. After this, the company has to\nfile the pending financial statements and annual returns with the Registrar and\npay the fee as per NCLT. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Publication_of_order_in_the_official_gazette\"><\/span><strong>7. Publication of order in the official gazette<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lastly, the ROC has to publish the\norder in the official gazette.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_ROC_in_striking_off_company\"><\/span><strong>Role of ROC in striking off company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Section 248 of the Companies\nAct, the ROC has the authority to strike off a company who are not carrying any\nbusiness or are not operating under the prescribed procedure. The Registrar has\nthe power to issue a public notice in the official gazette regarding the strike\noff company. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Liability_of_company_after_strike_off\"><\/span><strong>Liability of company after strike off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The liabilities of the director, managers, and other officials shall continue and may be enforced even after the strike off of the company. According to section 250 of The Companies Act, 2013 in case the company stands dissolved, it will cease to operate except for realizing amount due and for payment or discharge of liabilities. As per section 248 (6), the assets will be available for the payment of any liabilities even after the date of order of strike off. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Ministry has become stringent\nand taken actions against lots of companies for non-compliance and non-filing\nof statutory form with the Registrar. To put it simply, the striking off\ncompanies brought a ray of hope for rebuilding a corruption free economy. &nbsp;This is a good initiative by the government,\nwhich helps in the complete clean up of the corporate structure and prevent tax\nevasion. Lastly, it also helps in the prevention of money laundering and\nstrengthens the corporate sector.<\/p>\n\n\n\n<p>For more information, and assistance in <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\" target=\"_blank\">revival of struck off companies<\/a>, contact <a href=\"https:\/\/lawyerinc.net\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">LawyerINC<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs (MCA) is taking strict actions against shell companies and companies which do not file their financial statements and annual returns regularly with ROC (Registrar of companies). Last year alone, it struck off lakhs of companies under section 248(1) of Companies Act, 2013. The government is still cleaning up the corporate [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":849,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Reactivate Strike-Off Company? - LawyerINC<\/title>\n<meta name=\"description\" content=\"The applicant has to file an application for reactivating strike off companies whose name was struck off from the Register of the company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lawyerinc.net\/learning\/how-to-reactivate-strike-off-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Reactivate Strike-Off Company? 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