Rajendra Singh Chauhan vs M/S Dook Consulting Services Pvt Ltd
- CitationCOMPANY APPEAL (AT) NO.226 OF 2025
Ratio decidendi
The rule this decision rests on
The Tribunal has held that a petition under the Companies Act for oppression and mismanagement is not maintainable where the company has been struck off the register of companies and no appeal has been filed to restore its name, and that the continuation of such a petition must await restoration of the company's name to the register.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
HYBRID MODE 14.11.2025: This appeal is filed against an impugned order dated 15.07.2025
passed by the Ld. NCLT, New Delhi in CA/442/ND/2021 in CP No.54/ND/2014
whereby the Ld. NCLT has dismissed the application CA/442/ND/2021 which
sought restoration of the Company Petition. Admittedly, the Company Petition
was dismissed in default on 01.07.2021 for non-prosecution as it noted in the
impugned order that the appellant remained absent on 08.12.2020, 01.03.2021
and on subsequent hearings. Further on 01.07.2021, none appeared on behalf
of either of the parties. Even vide an earlier order dated 17.12.2019, a valuer
was appointed and directions were issued to the concerned petitioners to serve
copies to the respondent who were directed to be present but for over 1 ½ years
no progress was reported to the Tribunal and thus considering the prolonged
inaction and continued absence of the parties, the Tribunal vide order dated
01.07.2021 had dismissed the company petition for non-prosecution. Hence an 2
application CA 442/ND/2021 was filed for restoration of Company Petition but
during the interregnum, the Ld. NCLT observed the company was struck of from
the register of companies as per information available from MCA Portal and thus
it was no longer legally recognized for a valid business or capable to hold any
assets in its name. Its certificate of incorporation was deemed to be cancelled
2. Now admittedly, no appeal was filed against the order of striking of the
name of the company and thus Ld. NCLT was of the view that unless and until
the company is revived, no Company Petition for oppression and
mismanagement would be maintainable and as such dismissed the application.
However, it was also noted the appellant had failed to present any cogent or
satisfactory explanation for the delay in prosecuting the matter and had rather
displayed continued lack of diligence, having failed to cooperate with the
appointed valuer and assist in assessing the financial status of the company,
which rather became non-operational by the time the application for restoration
came to be heard and thus vide the impugned order, the Ld. NCLT had dismissed
the application for restoration.
3. To our mind, since an appeal restoring the name of the company to the
register of the members is not filed as yet and the company being not in
existence, hence until and unless the company's name is restored, the petition
for oppression and mismanagement would not be maintainable, hence there
would be no use to allow this appeal or give directions to continue with the
Company Petition, till such company's name is restored and thus we dispose of 3
this appeal with a liberty to the appellant to revive it, once the name of the
company is restored.
Pending applications, if any, are also closed.
(Justice Yogesh Khanna) Member (Judicial)
(Mr. Ajai Das Mehrotra) Member (Technical) Bm/rr
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