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CS Professional · Corporate Restructuring, Valuation and Insolvency · Strike Off and Restoration of Name of the Company and LLP

Kaveri Textiles Ltd had its name struck off and was dissolved. A workman, Mr. Iyer, whose wages were unpaid, applies to the Tribunal under section 252(3). The Tribunal is satisfied that the company was carrying on business when struck off. Which direction is the Tribunal empowered to give in its restoration order?

The Tribunal may restore the name and also give such directions and provisions as it considers just, so as to place the company and all other persons in the same position, as nearly as may be, as if the name had never been struck off, as provided in section 252(3).

  1. AOnly restore the name, with no further directions permitted
  2. BRestore the name and give such directions as are just to place the company and all other persons in the same position as nearly as may be as if the name had not been struck offCorrect
  3. CRestore the name but only if the Registrar consents to the application
  4. DRestore the name and automatically discharge all directors from liabilities incurred before strike off

Explanation

Section 252(3) lets the Tribunal, by its order, give other directions and make provisions as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name had not been struck off. The Tribunal is not limited to merely restoring the name, and the section contains no Registrar consent requirement or automatic discharge of directors.

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