By S&S Co. Advocates & Solicitors · Published 25 September 2026 · Informational content, not legal advice: see our disclaimer
Why Companies Get Struck Off
The Registrar of Companies has the power under Section 248 of the Companies Act, 2013 to strike off a company's name from the register where it has failed to commence business within a year of incorporation, has not been carrying on any business or operation for two immediately preceding financial years without applying for dormant status, or on certain other specified grounds. A company can also apply for voluntary strike-off. Once struck off, the company is dissolved and generally ceases to exist as a legal entity, though the liability of directors, managers and members continues for prior obligations as if the company had not been dissolved.
Who Can Seek Restoration, and Within What Time
Section 252 allows the company itself, a member, a creditor, or a workman, who feels aggrieved by the strike-off, to apply to the NCLT for an order restoring the company's name to the register: generally within three years of the date of the strike-off order, though the Registrar itself can also apply within that period if satisfied the strike-off was made in error or on incorrect facts.
What the NCLT Looks For
The Tribunal typically examines whether the company was, in fact, carrying on business or was otherwise in operation at the time it was struck off, or whether it is just and equitable to restore the company: for example, where pending litigation, unresolved assets, or ongoing contractual obligations mean the company's continued existence is genuinely necessary. Evidence such as bank statements, filed returns for the relevant years, and contemporaneous business records is typically central to demonstrating the company was operational and should not have been struck off, or that restoration now serves a genuine purpose.
An order of restoration typically directs the company to file all overdue annual returns and financial statements and to pay applicable filing fees and additional fees for the default period, and may impose further conditions the Tribunal considers necessary before treating the company as restored to full standing.
Frequently Asked Questions
How long do I have to apply for restoration after a company is struck off?
Generally, an application to the NCLT for restoration must be made within three years of the date of the strike-off order under Section 252 of the Companies Act, 2013.
Who can apply for restoration of a struck-off company?
The company itself, any member, creditor or workman aggrieved by the strike-off, and, in appropriate cases, the Registrar of Companies, can apply to the NCLT.
What happens to a company's liabilities once it is struck off?
The company is dissolved, but the liability of every director, manager and member continues and may be enforced as if the company had not been dissolved.
What must a company do once restoration is ordered?
It typically must file all overdue annual returns and financial statements, pay the applicable filing and additional fees for the default period, and comply with any further conditions the NCLT imposes.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Companies Act, 2013, Sections 248, 250 and 252.
- National Company Law Tribunal Rules, 2016, governing restoration petitions.