Limitation Period for making application for restoration of Company which is striked off by Registrar of Companies (ROC)

Many companies have been struck off by the Registrar from the register of companies.  Many questions have been raised on the clarity on limitation period for filing an appeal to tribunal for restoration of company. So for better understanding and clarity on this subject, we have presented the provisions in tabular form for your ready reference.

(A) Power of Registrar to strike off

Registrar can suo- moto strike off the company or the company can file an application for striking off its name from the Register of Companies.

Section	Provision	Grounds
248(1)	Registrar can suo-moto strike off companies  on the prescribed grounds	1.      Company has failed to commence its business within one year of its Incorporation; or 2.      Company is not carrying on any business or operation for a period of two immediately preceding financial years; and the company has not made any application within such time for obtaining the status of dormant company  under Section 455 of the Companies Act, 2013
248(2)	The company can file an application to the Registrar for striking off on all or any of the prescribed grounds

(B) Appeal to Tribunal for restoration of company

Registrar or any person aggrieved by the order of strike off can make application to tribunal for restoration on the prescribed grounds. The details of the same are mentioned in table below:

Limitation period for making application for restoration	Power to file an appeal for restoration	Grounds
3 years from the date  of order (Under section 252(1))	Registrar of Companies(ROC)	The name of the company has been struck off either 1.      Inadvertently; or 2.      On the basis of incorrect information furnished by the company or its directors
	Any person aggrieved by order	Removal of the name of the company from Register done by ROC is not justified in view of the absence of any of the grounds on which the order was passed by Registrar

Further company or any member, creditor, workman aggrieved by order of strike off can also file an appeal to tribunal for restoration. The details of the same are given in table below:

Limitation period for making application for restoration	Power to file an appeal for restoration	Grounds
20 years from the publication of Notice of strike off in the Official Gazette (Under 252(3))	Company or any member, creditor, workman aggrieved by order of strike off	If the company was carrying on business or in operation at the time of its name being struck off

Conclusion:

It can be concluded that if any company or any member, creditor, workman is aggrieved by the order of strike off, of such company which is carrying on business or in operation at the time of its name being struck off, it is advisable to file an appeal for restoration under Section 252(3) of Companies Act, 2013 for which the limitation period is 20 years rather than filing under Section 252(1) of the Companies Act, 2013 for which the limitation period is 3 years. By applying under Section 252(3), you just need to prove that the Company was carrying out business and Company is not required to prove that Registrar’s action is not justified, which is the requirement if the appeal is made under Section 252(1).