The term ‘Creditor’ in Section 252 of the Companies Act, 2013 ought to be construed widely so as to include a ‘creditor’ whose debt was contingent or prospective | The presence of the word ‘or otherwise’ of Section 252(3) signifies that even if the Company was not carrying on any business or was not in operation at the time of striking off, if it appears to it to be ‘otherwise just’, then the name of the Company ought to be restored – Sushil Kumar and Ors. Vs. Registrar of Companies (RoC) and Ors. – NCLT New Delhi Bench
January 2, 2025
The NCLT New Delhi Bench held that: (i) Fairness and justice go hand in hand and hence, this Tribunal must weigh the requirement of being just from the lens of fairness and justice based on the reasons put forth by the Appellants in the instant appeal. (ii) The term ‘Creditor’ in Section 252 of the Companies Act, 2013 ought to be construed widely so as to include a ‘creditor’ whose debt was contingent or prospective. (iii) The presence of the word ‘or otherwise’ signifies that even if the Company was not carrying on any business or was not in operation at the time of striking off, if it appears to it to be ‘otherwise just’, then the name of the company ought to be restored.