2021 (4) TMI 1394 - HC - Companies Law

Challenge to the impugned disqualification notification of the second respondent vide list of Disqualified Directors 164(2)(a) Companies Act 2013 - Phase III - disqualification for the period from 01.11.2018 to 31.10.2023 - permission to petitioner to get reappointed as Director of any company or appointed as Director in any company without any hindrance. HELD THAT - The notification dated 17.12.2018 which was uploaded in the website by the first respondent on 18.12.2018 was challenged on the strength of the judgment of this Court in Bhagavan Das case 2018 (8) TMI 436 - MADRAS HIGH COURT . However they were dismissed by this Court and such orders were passed on 27.01.2020 and 10.02.2020 etc. The said orders were put to challenge in a batch of writ appeals which were dealt with by the Hon ble First Bench of this Court in Meethelaveetil Kaitheri Muralidharan V. Union of India 2020 (10) TMI 595 - MADRAS HIGH COURT . The Hon ble Division Bench in the said order dealt with the powers of the RoC in the light of Sections 164 and 167(1) of the Companies Act 2013 and Rule 14 of the Companies (Appointment and Qualifications of Directors) Rules 2014 and also has elaborately considered as to whether the RoC is entitled to deactivate the Director Identification Number (DIN) by referring to the Rules 19 10 and 11 of the said 2014 Rules. Thus following the decision of the Hon ble First Bench of this Court in Meethelaveetil Kaitheri Muralidharan s case the writ petition is allowed.

Summary

Issues:
Challenge to disqualification notification under Companies Act 2013 - Phase III for the period from 01.11.2018 to 31.10.2023, seeking reappointment as Director without hindrance.
Analysis:
The writ petition challenges the disqualification notification of the second respondent under Section 164(2)(a) of the Companies Act, 2013, for the petitioner's disqualification period. The petitioner seeks a direction to allow reappointment as Director without hindrance. The Court notes that the Registrar of Companies (RoC) has been disqualifying Directors under the Companies Act, 2013, through various notifications. Previous challenges to such notifications resulted in orders setting them aside. The current notification of 17.12.2018 was also challenged, but previous dismissals led to further appeals. The Hon'ble Division Bench examined the powers of the RoC under Sections 164 and 167(1) of the Companies Act, 2013, and relevant Rules. The Bench concluded that the RoC lacked the authority to deactivate Director Identification Numbers (DIN) due to disqualifications under Section 164(2) of the Act. The appeals were allowed, the impugned order was set aside, and the deactivated DINs were ordered to be reactivated within 30 days. The RoC was permitted to initiate action for disqualification subject to an enquiry attributing specific defaults to directors. The writ petition was allowed in line with the Division Bench's decision, closing the connected miscellaneous petitions without costs.