Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2020 (3) TMI 806

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 4(2) of the 2013 Act, if construed in proper perspective, indicates that the legislature intentionally made a distinction in the language of the first part of the said sub section with the second part thereof. Sub section (2) of Section 164 starts with the expression no person, who is or has been a Director of a company , which has committed defaults specified therein, while the sub section ends with the expression shall be eligible to be re appointed as a Director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so - a specific distinction is made in the sub section between the directorship of a person of a defaulting company, in respect of which the eligibility of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... No.1121 (W) of 2020, W.P. No.963 (W) of 2020 Sabyasachi Bhattacharyya, J. For the petitioners: Mr. Saptarshi Banerjee, Mr. A.K. Upadhyay For the petitioners: Mr. Saptarshi Banerjee, Mr. Somesh Ghosh, For the Union of India: Mr. Kamal Singh, Subhankar Chakraborty, Mr. Shiv Chandra Prasad, Mr. S. Tiwari JUDGMENT Sabyasachi Bhattacharyya, 1. The common question involved in all the present writ petitions is, whether the disqualification of the petitioner's Director Identification Number (DIN) would operate in respect of the defaulting company only or all other companies in respect of which the petitioner is a Director. 2. Learned counsel appearing for the petitioner in the respective cases rely upon three unreported judgments of t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... indicates that the legislature intentionally made a distinction in the language of the first part of the said sub‐section with the second part thereof. Sub‐section (2) of Section 164 starts with the expression "no person, who is or has been a Director of a company", which has committed defaults specified therein, while the sub‐section ends with the expression "shall be eligible to be re‐appointed as a Director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so". 6. Thus, a specific distinction is made in the sub‐section between the directorship of a person of a defaulting company, in respect of which the eligibili .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... mensurate therewith. 10. Accordingly, W.P. No.700(W) of 2020, W.P. No. 699(W) of 2020, W.P. No. 698(W) of 2020, W.P. No. 23992(W) of 2018, W.P. No. 22859(W) of 2019, W.P. No.4733(W) of 2019, W.P. No.669(W) of 2018, W.P. No. 29008(W) of 2017, W.P. No.1121(W) of 2020 and W.P. No. 963(W) of 2020 are thus disposed of, thereby setting aside the disqualification of the DIN of the respective petitioners in respect of other companies, than the company in respect of which the default has been allegedly committed. However, such disqualification shall continue to operate in respect of the defaulting company. 11. It is, however, made clear that in cases where the disqualification took place after the introduction of the Amendment to the 2013 Act date .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates