Section 249 of the Companies Act, 2013
Section 249 of the Companies Act, 2013 deals with restrictions on making an application for removal of the name of a company from the Register of Companies under Section 248.
✅ Section 249 – Restrictions on Making Application for Removal of Name
Purpose:
To prevent misuse of the process of company strike-off and ensure that companies do not escape legal obligations or liabilities by getting their names removed.
🔒 A company cannot apply for removal of its name under Section 248 if, in the last 3 months, it has:
Changed its name, or
Shifted its registered office from one State to another, or
Made a disposal for value of property or rights held by it (outside of normal business), or
Engaged in any other activity except what is necessary for:
Making the application under Section 248,
Complying with statutory requirements, or
Discharging its obligations, or
Applied to the Tribunal for approval of a compromise or arrangement and the matter is still pending, or
Is being wound up, either voluntarily or by Tribunal, or under insolvency proceedings.
❌ If a company files such an application in violation of Section 249:
The application is void, and
The persons responsible (e.g., directors) may face penalty and legal consequences.
⚖️ Example:
If a company sells its major assets and then immediately applies for strike-off, such an application would be prohibited under Section 249, unless 3 months have passed.
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