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TMI Blog2018 (3) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned, this Court does not find any illegality, unconstitutionality or ultra vires in the provisions of Section 164(2)(a) or Section 167 of the Act. Merely because the provisions may operate harshly against the Directors of the defaulting company, it does not render a provision enacted with an avowed purpose of ensuring the due compliance of the provisions of the Act, foundationless or ultra vires.The writ petitions are premature and without any foundation - W.P.NO.7819/2018 C/W W.P.No.7820/2018, W.P.NO. 7821/2018 (GM-RES) - - - Dated:- 26-2-2018 - Dr. VINEET KOTHARI J. Mr. S. Vivekananda, Adv. for Petitioners. ORDER The petitioners- Mr. Yenugu Krishna Murthy in W.P.No.7819/2018, Mr.Devarunda Manjegowda Purnesh in W. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Affairs, Government of India, on their website vide Annexure-B while giving the DIN (Directors Identification Number) status qua the petitioners they were shown as Disqualified by the Registrar of Companies U/s.164(2) of the Companies Act, 2013. The said computer status sheet only has been produced before this Court to the writ petitions as Annexures-B and C , gives the list of other such several Directors of the Limited Companies including the names of the present petitioners, who have been Disqualified as Directors of the Board of Directors of the Limited Companies for having incurred disqualification and one of the Column in Annexure-C indicates the reason for Disqualification of five years in brief viz., Violated Section 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with related party transactions under section 188 at any time during the last preceding five years; or (h) he has not complied with sub-section(3) of section 152. (2) No person who is or has been a director of a company which- (a) has not filed financial statements or annual returns for any continuous period of three financial years; or He further submitted that as per Section 167 of the Act , such Director who has incurred Disqualification U/s.164(2)(a) of the Act is automatically deemed to have vacated the office of the Director of any Company in which he is a Director. The said relevant portion of Section 167 of the Act is also quoted below for ready reference: 167. Vacation of office of director (1) The office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present writ petitions in this Court on 15.02.2018. 4. Having heard the learned counsel for the petitioners, this Court is of the opinion that the present petitions are pre-mature and are liable to be dismissed as such. The petitioners were not prevented by any provision of law or otherwise to approach the Registrar of Companies in the first instance and seek the order passed by him U/s.164(2) of the Act. The said order would have revealed the facts of the case and the reasons for which the petitioners were disqualified to be the Directors of Limited Companies U/s.164(2) of the Act. It is also not borne out from the record as to whether the petitioners admit their fault U/s.164(2) of the Act or not. If they deny their fault, they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 167 of the Act. Merely because the provisions may operate harshly against the Directors of the defaulting company, it does not render a provision enacted with an avowed purpose of ensuring the due compliance of the provisions of the Act, foundationless or ultra vires. Such challenges raised in the courts of law, just to maintain the writ petitions under Article 226 of the Constitution of India without any factual foundation, do not deserve to be entertained at all. The academic questions or the legislative wisdom is not the subject matter to be decided by the Courts of law unless such questions are raised in properly instituted cases, based on proper factual foundation of the case. 7. In the present cases, this Court does not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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