Appeal for restoration of Co.’s name can’t be maintained by one whose status as its director is disputed: SC

  • Blog|Company Law|News|
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 4 November, 2022

restoration of company name

Case Details: Nirendra Nath Kar v. Gopal Navin Bhai Dave - [2022] 142 563 (SC)

Judiciary and Counsel Details

    • Ajay Rastogi & B.V. Nagarathna, JJ.

Facts of the Case

In the instant case, an appeal was filed against the order passed by the High Court of Calcutta setting aside the order of the Registrar of Companies (RoC) striking off the name of the company from the register of RoC u/s 560(5) of the Companies Act, 1956.

The name of the company – Basanti Cotton Mills (1998) Private Limited was struck off by the RoC in terms of section 560(5) of the Companies Act, 1956. The RoC alleged that the company was not functioning properly and not carrying out any business and the last annual return was filed for the year 2002-2003.

Aggrieved by the order of ROC, a complaint was filed by the appellant – one of the directors of the company, in the year 2010 before the High Court u/s 560(6) of the Companies Act, 1956. The High Court allowed the application on the ground that the procedure as prescribed u/s 560 of the Companies Act, 1956 was not followed before striking off the name of the company from the register of RoC and thus restored the name of the company.

Thereafter, an appeal was made to the Supreme Court against the order passed by the High Court.

Supreme Court Held

The Supreme Court held that an appeal for restoration of the name of the company struck off by RoC as defunct cannot be maintained by one whose status as director of the defunct company was disputed and not evident from documents filed with RoC when the company’s name was borne out on records of RoC.

The Supreme Court, further held that the filings of the individual as a director after the company’s name is struck off cannot give the individual the right to file/maintain an appeal for restoration of the name of the company until the dispute as to his status was decided in his favour by the civil court. Accordingly, the appeal was to be dismissed.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied