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November 2026

Ganton Projects (P.) Ltd. v. Registrar of Companies (NClAT) : Restoring struck-off company name requires rational cost determination, making arbitrary ten-lakh cost disproportionate and reducible

By Pramod Prabhudesai, Chartered Accountant | Kaushik M. Jhaveri, Company Secretary
Reading Time 3 mins

15. Ganton Projects (P.) Ltd. vs. Registrar of Companies, NCT of Delhi & Haryana National Company Law Appellate Tribunal, New Delhi

Order dated 18th September, 2026

Where company's name was struck-off for non-filing of statutory returns and NCLT restored the name, but imposed cost of ₹10,00,000 without quantifying actual costs under Rule 87A of NCLT Rules, 2016, such disproportionate cost lacked rational basis and was reduced to ₹5,00,000.

Facts

  • The appellant, incorporated in 2011, had its name struck-off for non-filing of income tax returns, balance sheets, and annual returns in MCA-21 since incorporation, and non-reflection of PAN on the e-filing portal. In Section 252(3) proceedings, citing assets and pending proceedings as a judgment debtor, it sought restoration.
  • The NCLT restored the company's name but directed payment of cost of ₹10,00,000 to the Registrar of Companies, holding that the statutory non-filings since incorporation were serious lapses.
  • On appeal, the appellant challenged the quantum of cost as disproportionate under Rule 87A(4)(c), contending cost must be linked to actual costs occasioned by the application, and pleaded inadvertence and over

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