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2018 (4) TMI 1876 - HC - Companies LawStay of the proceedings disabling the DIN numbers - Direction to 1st respondent to reactivate Or restore the DIN numbers of the petitioners herein - HELD THAT - In the considered view of this Court, restoration of the DIN numbers of the Directors concerned is necessary not only for submission of annual returns and financial statements of the subject company, but also for discharging their functions as Director in the other Companies and, therefore, restoration of the DIN numbers of the Directors concerned is essential. Moreover, the petitioners also intend to follow the procedure before they take appropriate steps for closure of their company of which they are the Directors by following the procedure established by law as such a course, according to them, would meet the ends of justice. There shall be stay of the proceedings disabling the DIN of the present petitioners. There shall be a further direction to the 1st respondent to restore the DIN numbers of the petitioners pending disposal of this writ petition, so as to enable them to submit annual returns and financial statements of the subject Company of which they are the Directors and avail the benefits of COD Scheme - Post after four weeks in Adjourned Motion List, for counter and hearing.
Issues:
1. Granting of interim order for restoration of DIN numbers of the Directors. 2. Disqualification of Companies and the remedy available to the petitioners. 3. Consideration of the petitioners' intention to close the company and follow the procedure established by law. Analysis: 1. The petitioners requested an interim order to restore their DIN numbers to submit annual returns and financial statements of their company. The counsel for the petitioners argued that the facts of this case were similar to other cases where interim orders were granted. The main contention was the need for a stay of proceedings to follow the Condonation of Delay Scheme. The Assistant Solicitor General opposed the interim order, suggesting that the petitioners should approach the Tribunal for remedies under Section 252 of the Act. The Court considered the submissions and decided that restoring the DIN numbers was essential for the petitioners to fulfill their directorial duties and proceed with closing the company following legal procedures. 2. The Court acknowledged the necessity of restoring the DIN numbers for the petitioners to discharge their functions as Directors in other companies as well. It was noted that the petitioners intended to close their company by following the established legal procedure, which was deemed to serve the interests of justice. Consequently, the Court ordered a stay of proceedings to disable the DIN of the petitioners and directed the 1st respondent to restore their DIN numbers to enable compliance with the COD Scheme. The petitioners were instructed to deposit charges and submit necessary documents before the Registrar of Companies by the extended deadline of 30.04.2018. 3. The Court scheduled the next hearing after four weeks for further proceedings. The judgment emphasized the importance of restoring the DIN numbers for the petitioners to carry out their directorial responsibilities and avail the benefits of the COD Scheme. The decision highlighted the significance of following legal procedures for closure and the need for compliance with regulatory requirements within the specified timeline.
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