2021 (1) TMI 239 - HC - Companies Law

Disqualification of petitioners - permission to petitioners to file Financial Statements and Annual Return for the pending financial years, by removing the strike off status of the company and activating the DIN of the petitioners - section 164(2) of Companies Act, 2013 - HELD THAT - The petitioners have not produced any request made by them before the respondents in this behalf. In case the petitioners approach the 2nd respondent seeking an activation of the DIN and DSC for the purpose of uploading Form STK-2, the 2nd respondent shall take up the application and pass appropriate orders in accordance with law on the same within a period of two weeks from its receipt. The petitioners shall produce a copy of this judgment before the 2nd respondent for compliance. Petition disposed off.

Summary

Issues:
1. Disqualification of petitioners for not filing annual returns in time.
2. Deactivation of DIN and DSC of petitioners under section 164(2) of the Companies Act, 2013.
3. Petitioners seeking to file returns and enable a 'strike off' of the company.
4. Lack of evidence of any request made by petitioners before the respondents.

Analysis:

1. The petitioners in this case sought a writ to quash the disqualification imposed on them from 1-11-2017 to 31-10-2022 due to the company's failure to file annual returns in time. The petitioners expressed their intention to file the necessary returns and make statutory uploads to facilitate the 'strike off' of the company. However, the court noted that the petitioners did not provide any evidence of making a request to the respondents in this regard.

2. The disqualification of the petitioners was a result of the deactivation of their Director Identification Number (DIN) and Digital Signature Certificate (DSC) by the respondents under section 164(2) of the Companies Act, 2013. The petitioners' counsel argued that the deactivation was unjustified, considering the petitioners' intention to wind up the company and comply with the necessary procedures to strike off the company from the register.

3. The court directed that if the petitioners approach the second respondent seeking the activation of their DIN and DSC to upload Form STK-2 for the strike off, the second respondent should process the application promptly and issue appropriate orders within two weeks of receiving the request. The petitioners were instructed to present a copy of the judgment to the second respondent for compliance with the court's directions.

4. The judgment, therefore, granted the writ petition in accordance with the court's directions, emphasizing the importance of the petitioners following the proper procedures and providing necessary documentation to the authorities to enable the desired actions regarding the strike off of the company. The court's decision highlighted the need for petitioners to engage with the relevant authorities and comply with the legal requirements to address the disqualification issues effectively.