The National Company Law Tribunal (NCLT) has set aside the 2018 decision of the Registrar of Companies (ROC) to strike off S.S. Endothermics Pvt. Ltd., a company involved in recycling old rubber tyres into rubber chips. The tribunal’s decision came after hearing an appeal by Byram Shroff, a 50% shareholder and director of the company, who argued that a chance should be given to him, especially given that the company was already embroiled in litigation before other court’s.
Shroff, a Nepean Sea Road resident, had approached the NCLT, claiming that his fellow director and 50% shareholder, Vivek Shah, who was responsible for the day-to-day management and compliance of the company, was allegedly involved in financial mismanagement and oppression. A forensic audit revealed that Shah had allegedly misappropriated funds amounting to ₹1.42 crore. A company petition under Sections 241 and 242 of the Companies Act, 2013, regarding mismanagement, is currently pending before the NCLT, along with a related criminal case in the Special Court at Greater Mumbai.
Shroff explained that the delay in responding to the ROC’s notices, which led to the company’s name being struck off, was due to Shah’s alleged control over the company’s premises. However, Shroff later filed responses to the notices, requesting the ROC not to strike off the company’s name.
Despite the ROC’s argument that the company was struck off in 2018 after following due legal process.
The NCLT however ruled in favor of Shroff, thereby directing the company to pay a cost of ₹50,000, which must be deposited in the Prime Minister’s Relief Fund through “Bharatkosh,” as a condition for reinstating the company on the ROC’s register.
