Strike off is the removal of a company's name from the register of companies by the Registrar under Section 248 of the Companies Act, 2013, either on the Registrar's own motion (for example where the company has not carried on business for two preceding financial years or has not filed returns) or on the company's application. The Registrar must publish notice and consider objections before striking off. Under Section 248(7) the liability of every director, manager, officer and member continues and may be enforced as if the company had not been dissolved. A creditor can apply to the NCLT under Section 252 for restoration of the company, within 20 years of the strike-off notice, if it was aggrieved.
How strike off works in India
The Registrar issues a notice (Form STK-1) to the company and directors, publishes the proposed strike off (STK-5) on the MCA website and in the Gazette, and invites objections within 30 days. Creditors who object with evidence of pending dues can stop the process. If no objection succeeds, the company is struck off and its status changes to "strike off". A company applying voluntarily (STK-2) must file a statement of accounts and an indemnity by directors that liabilities will be met. A supplier who discovers a buyer has been struck off can apply to the NCLT for restoration, showing the company was carrying on business or that restoration is just, and can pursue directors under Section 248(7) and under the indemnity.
Why it matters for getting paid
If your buyer's MCA status shows "under process of striking off", act within the objection window: file an objection with the Registrar with your invoices and demand. If it is already struck off, the debt survives against the directors and the company can be restored so that a suit, Section 138 complaint or execution can proceed. Monitor large buyers' MCA status every quarter. See MCA master data, Section 141 and NCLT.
How FundRaksha uses it
FundRaksha's advocates check MCA status at the start of every corporate case and, where strike off is in process, file the creditor's objection with the Registrar immediately. For struck-off buyers, they advise on restoration under Section 252 and on proceeding against directors. Fee: 30% of recovery; 700+ businesses have been paid through FundRaksha.
Worked example (hypothetical)
A Jaipur handicrafts exporter is owed ₹7,50,000 by a Delhi private limited trading company. In reviewing MCA data the exporter sees status "under process of striking off" with an STK-5 notice published 12 days earlier. Its advocate files an objection with the Registrar within the 30-day window, attaching invoices, the ledger and the legal notice. The Registrar does not proceed with the strike off. The company's directors, now facing continued filings and penalties, negotiate and pay ₹7,50,000 over three months. Had the strike off completed, the exporter would have applied to the NCLT for restoration and pursued the directors under Section 248(7).
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.