2018 (3) TMI 1068 - HC - Companies Law

Condonation of Delay Scheme, 2018 - Held that - In order to facilitate this exercise, operation of the impugned list, insofar as it concerns the petitioners, will remain stayed till 31.3.2018 or, till such time the respondents take requisite decision with regard to the request of the petitioners made to them in consonance with the provisions under Section 248 (2) of the Companies Act, 2013 and under the Condonation of Delay Scheme, 2018. Needful will be done by the petitioners within two weeks from today. In addition thereto, for the moment, respondent no.2/Registrar of Companies will also activate the petitioners DIN and DSC.

Summary

Issues:
1. Disqualification of directors due to company's failure to file financial statements.
2. Impediment in directors' roles in active companies due to disqualification.
3. Application of Section 248(2) of the Companies Act, 2013 and Condonation of Delay Scheme, 2018.
4. Stay on the impugned list affecting the petitioners.

Analysis:
1. The petitioners were appointed as Directors of a company, CKG Holidays Pvt. Ltd., which was struck off the Register of Companies for not filing financial statements and annual returns. The petitioners claimed CKG had not conducted any business since incorporation. They were also directors of other active companies.

2. The petitioners' names were included in the list of disqualified directors, hindering their roles in the active companies. They expressed no intention to revive CKG and planned to act under Section 248(2) of the Companies Act, 2013 and the Condonation of Delay Scheme, 2018.

3. The court directed the respondents to follow the directives from a previous judgment and ordered the petitioners to comply with Section 248(2) of the Companies Act, 2013 and the Condonation of Delay Scheme, 2018 within two weeks. The operation of the impugned list concerning the petitioners was stayed until 31.3.2018 or until the respondents made a decision regarding the petitioners' requests.

4. The petitioners were instructed to complete the necessary actions within two weeks, and the Registrar of Companies was directed to activate the petitioners' DIN and DSC. The court clarified that the order was subject to the final outcome of pending appeals before a specific Division Bench.

This judgment addressed the disqualification of directors, the impact on their roles in other companies, the application of relevant legal provisions, and the temporary stay on the impugned list affecting the petitioners.