No Appeal Lie u/s 560 If a Co. Was Voluntarily Struck Off As Per Prescribed Procedure | NCLT Rightly Dismissed Plea

Case Details: Rajneesh Ghei v. Registrar of Companies - [2023] 155 taxmann.com 353 (NCLAT-New Delhi)

Judiciary and Counsel Details

• • Rakesh Kumar, Judicial Member & Dr Alok Srivastava, Technical Member
  • Sanjeev Sahay, Gagan Kataria & Karan Deep Singh, Advs. for the Appellant.
  • P.K. Sahu, Adv. for the Respondent.

Facts of the Case

The applicant was executing contract for South Central Railways for design, supply, installation, testing aIn the instant case, a company was incorporated and registered with the Registrar of Companies (RoC) under the Companies Act, 1956. The father of the appellant and respondent No. 2 i.e. the brother of the appellant, were two directors of the company. After the demise of the father of the appellant, his mother and respondent No. 2 remained two directors of the said company.

Respondent No. 2 after the demise of his mother, filed an application for removing the name of the said company from the register of companies under the easy exit scheme. RoC approved an application and an order was issued to strike off the name of the company from the register of companies.

The appellant filed a petition for setting aside said order, however, the NCLT dismissed the said petition by the impugned order. The appellant filed an instant appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the impugned order passed by the NCLT.

The NCLAT observed that when the company had itself voluntarily applied for striking off its name by filing an application under the easy exit scheme and the name of the company had been struck off following the procedure prescribed, no appeal should lie under section 560 of the 1956 Act.

NCLAT Held

The NCLAT held that since the appellant was not a member of said company and an appeal would be available to either a member of the company, a creditor or a director, there was no error in the impugned order and, thus, an instant appeal was to be dismissed.

List of Cases Reviewed

• • Order passed by the NCLT (New Delhi) in C.P. 325/2014, dated 12-12-2018. (para 21) affirmed.
  • Promod Kumar Sharma v. Registrar of Companies [2014] 47 taxmann.com 408/128 SCL 155 (Guj.) (para 19) followed.

List of Cases Referred to

• • Promod Kumar Sharma v. Registrar of Companies [2014] 47 taxmann.com 408/128 SCL 155 (Guj.) (para 9)
  • Killick Nixon Ltd. v. Bank of India 1982 SCC Online Bom 57 (para 11)
  • Howrah Trading Co. v. CIT AIR 1959 SC 775 (para 11)
  • Balkrishan Gupta v. Swadeshi Polytex Ltd. [1985] 2 SCC 167 (para 11)
  • Pl. Tl. Thenappa Chettiar v. Indian Overseas Bank Ltd. [1943] 13 Com Cases 202 (Mad.) (para 12).