Chapter XVIII - Removal of Names of Companies from the Register of Companies
Section 250
Section 250: effect of company notified as dissolved
From the date in the section 248(5) notice, a struck-off company ceases to operate as a company and its certificate of incorporation is deemed cancelled, except for realising amounts due to it and discharging its liabilities.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where a company stands dissolved under section 248, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.
Introduction
Section 250 states the consequence of dissolution by strike-off. The exception ensures money owed to the company can still be realised and its liabilities and obligations can still be paid or discharged.
Section 248(7) separately preserves the liability of directors, managers, officers with management powers, and members, as if the company had not been dissolved.
Key takeaways
Effective date
The date mentioned in the Gazette notice under section 248(5).
Ceases to operate
The company stops operating as a company and its certificate is deemed cancelled.
Limited survival
Only for realising amounts due and paying or discharging liabilities and obligations.
When dissolution takes effect
Under section 248(5), the Registrar publishes a strike-off notice in the Official Gazette, and on publication the company stands dissolved. Section 250 applies from the date mentioned in that notice.
What survives
The deemed cancellation does not apply for realising amounts due to the company or for paying or discharging its liabilities or obligations. Section 248(6) requires the Registrar to be satisfied about provision for these, and its proviso keeps the company’s assets available for liabilities even after the order.
Restoration route
A person aggrieved by the strike-off may seek restoration from the Tribunal under section 252, within the time limits stated there.
Practical preparation
Note the Gazette notice date; list receivables still to be realised and liabilities still to be discharged; preserve records; consider section 252 if the company should not have been struck off.
Practical checklist
Do
- Keep records after dissolution for dues and liabilities that remain.
- Check section 252 promptly if the strike-off was unjustified.
Avoid
- Do not continue business in the dissolved company’s name.
Illustrative example
Hypothetical: receivable after strike-off
After a company is struck off, a customer pays an old invoice.
Status
The company is dissolved from the date in the Gazette notice.
Exception
Section 250 still allows realisation of amounts due to it.
Liabilities
Realised amounts remain available for its outstanding liabilities.
Outcome
- The receivable can be realised within the section 250 exception, without reviving business operations.
Glossary
- Dissolution
- The end of the company’s existence as a company when the section 248(5) notice is published.
Frequently asked questions
Can a struck-off company still recover money owed to it?
Yes. Section 250 preserves the company for realising amounts due to it and for discharging its liabilities.
Do directors escape liability on dissolution?
No. Section 248(7) continues the liability of directors, managers, officers with management powers and members.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026