Appeal or Application for Restoration of Names of Company


The National Company Law Tribunal (Amendment) Rules, 2017 notified on 6th July 2017 which came into force in same date inserted Rule 87A the National Company Law Tribunal Rules, 2016. In this post, we will discuss newly inserted rules with brief background.

Chapter XVIII of the Companies Act, 2013, discussed earlier here, deals with removal of name of the companies from the register of companies maintained by Registrar of Companies (or say MCA21 system). Section 248 (1) gives power to Registrar to send notice and remove the name of the companies in accordance with these rules. A company may apply for removal of its name from register under section 248(2).

A company may make application for removal of its name under section 248(2) of the Companies Act, 2013 read with Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 as discussed earlier here. Registrar of Companies may issue notices for suo – moto removal of names under section 248(1) of the Companies Act, 2013 read with rule 3 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 as discussed earlier here.

Recently, Registrar of Companies posted strike off notices in bulk of companies seems eligible for suo-motu strike off. Public notices are also published by almost all Registrar of Companies and can be accessed here. On 1st July 2017, Prime Minister of India himself announced in a public meeting deletion of name thousands of companies. Soon thereafter several Registrar of Companies published notices under Section 248(4) of the Act in weekly editions Official Gazette of India.

Section 252 of the Companies Act, 2013 discussed earlier here, deals with appeal against such removal of name of companies under Section 248 before honorable National Company Law Tribunal. Rule 87A inserted by the National Company Law Tribunal (Amendment) Rules, 2017 deals with appeal or application under sub-section (1) and sub-section (3) of section 252.

According to sub – Rule (1) of rule 87A, an appeal under sub – section (1) or an application under sub-section (3) of section 252, may be filed before the Tribunal in Form No NCLT – 9, with such modifications as may be necessary.

A copy of the appeal or application shall be served on the Registrar and on such other persons as the Tribunal may direct, not less than fourteen days before the date fixed for hearing of the appeal or application. [Rule 87A(2)]

Upon hearing the appeal or the application or any adjourned hearing thereof, the Tribunal may pass appropriate order, as it deems fit. [Rule 87A(3)]

According to sub – rule (4) of Rule 87A, where the Tribunal makes an order restoring the name of a company in the register of companies, the order shall direct that-

(a) the appellant or applicant shall deliver a certified copy to the Registrar of Companies within thirty days from the date of the order;

(b) on such delivery, the Registrar of Companies do, in his official name and seal, publish the order in the Official Gazette;

(c) the appellant or applicant do pay to the Registrar of Companies his costs of, and occasioned by, the appeal or application, unless the Tribunal directs otherwise; and

(d) the company shall file pending financial statements and annual returns with the Registrar and comply with the requirements of the Companies Act, 2013 and rules made thereunder within such time as may be directed by the Tribunal.

According to sub – rule (5) of rule 87A, an application filed by the Registrar of Companies for restoration of name of a company in the register of companies under second proviso to sub-section (1) of section 252 shall be in Form No NCLT – 9 and upon hearing the application or any adjourned hearing thereof, the Tribunal may pass an appropriate order, as it deems fit.”

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