The Companies Act

Dissolved but Not Defeated: How Struck-Off Companies Enforce Arbitral Wins

Summary: When a company is struck off from the Register of Companies (ROC), it is deemed dissolved under the Companies Act, 2013, but this does not nullify its legal rights, including those arising from arbitral awards. The Arbitration and Conciliation Act, 1996, does not recognise striking off as a ground to set aside or resist enforcement of an award. Section 250 of the Companies Act explicitly allows dissolved companies to continue operating for the purpose of realising dues and settling liabilities. Indian courts, including in Exotic Buildcon, Value Advisory, and AB Creations, have affirmed that arbitral awards remain enforceable even if the company is struck off, provided it is restored to the register. Restoration retroactively validates the company’s existence, enabling it to pursue claims and enforce awards, making dissolution a procedural pause rather than a termination of justice.Continue Reading Dissolved but Not Defeated: How Struck-Off Companies Enforce Arbitral Wins