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TMI Blog2019 (6) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act 2013. Whether every director of a company in this position should be proceeded against and declared to be ineligible for reappointment or appointment in other companies is the main question. Once it is argued that the disqualification is not automatic and would not result in vacating of the office, then, all the more it is necessary to be clarified until we hear the parties at some length that the documents such as Exhibit A uploaded on the portal of the Registrar of Companies as also any other document which in the nature of the page 23 of the paper-book by itself and without anything more will not prevent or preclude the participation of such directors in the proceedings contemplated in Section 29-A of IBC. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard of Directors of this company that she wished to tender her resignation with immediate effect. 5. Mr. Kamdar, learned senior counsel appearing for the Petitioner, relies upon an endorsement below this resignation letter which denotes that the said resignation was accepted on that day itself. There is a stamp affixed below this endorsement. 6. Mr. Kamdar would therefore submit that Section 164(2)(a) which has been brought in to effect from 1st April 2014 would not take within its fold such a prior resignation and, therefore, the Petitioner cannot be said to be disqualified. 7. The Petitioner relies upon the wording of this section to urge that though the section is titled as Disqualifications for appointment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on will vitally afect the Petitioner in the sense that one M/s. Diamond Forever International ( DFI ) is the highest bidder and a resolution Applicant in the corporate insolvency process initiated against a corporate debtor named Provogue India Limited for debt of ₹ 260 crores. 11. The Petitioner was one of the partners of M/s. Diamond Forever International at the time of submission of the resolution plan. However, it is brought to our notice that once she stands disqualified on 7th September 2018 by striking of the name of T.P. Ship Recycling Private Limited, then, the Insolvency and Bankruptcy Act 2016 and particularly Section 29-A inserted therein by Act VIII of 2018 with its clause (e) would apply and she will not be elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is or has been a director of a company and in the event that company defaults he will not be eligible for reappointment as a director of that company or appointment in other companies for a period of five years from the date on which the said company defaults. 16. Therefore, the issue whether this provision can be invoked and applied despite the amendment to the Companies Act 2013 been brought into efect from 1st April 2014, can it afect the position of a director who was appointed prior to this provision being brought into efect, is very vital. Secondly, we will have to consider the impact of this provision on a person who is or has been a director of a company which has defaulted in complying with the requirements of the Compani ..... X X X X Extracts X X X X X X X X Extracts X X X X
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