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Saturday 27 October 2012

JUDGEMENT OF KOLKATA HIGH COURT ON DEFUNCT COMPANY NOTICE REPLY



In the recent Kolkata High Court Judgment on BASANTI COTTON MILLS PVT. LTD. Vs REGISTRAR OF COMPANIES, WEST BENGAL 

As per the judgment:

A Company can be strike off by the Registrar of the Companies as a Defunct Company only if the company in reply to the notice of defunct company issued to it asserts that it no more carry on any business or the Company do not reply the notice. If in reply to the notice the company affirms otherwise its name can’t be strike off, though the registrar has all the authorities to verify and raise query on the working status of the Company.

Another point of importance is section 3(5) of the Companies Act, 1956 as per which the name of the Company can be strike off if it fails to maintain the minimum paid-up capital requirement, but again in this situation too it shall be an un-disputed and absolute matter of not fulfilling the minimum paid-up capital requirement.



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