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TMI Blog2021 (1) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... delay in accordance with the applicable laws and regulations, if the same is permissible. Petition disposed off. - W.P. (C) 11264/2020 & CM APPL. 35094/2020 - - - Dated:- 6-1-2021 - Justice Prathiba M. Singh For the Petitioner : Ms. Sudha Ravi, Mr. Priyanshu Upadhyay and Mr. Shambhu, Advocates. For the Respondent : Mr. P.C. Yadav, Sr. Panel Counsel. ORDER Prathiba M. Singh, J. (Oral) 1. This hearing has been done by video conferencing. 2. The Petitioners in this case are directors of two Companies - Bhargava Films Pvt. Ltd. and Talent Scanner Pvt. Ltd. The Petitioners were disqualified as directors in respect of Bhargava Films Pvt. Ltd. due to nonfiling of balance-sheet and other returns with the Registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k (supra) it was held that this proviso cannot have retrospective effect and would only apply if the disqualification took place after 7th May 2018. Paragraph 98 of Mukut Pathak (supra) reads as under: 98. In view of the above, the petitioners would not demit their office on account of disqualifications incurred under Section 164 (2) of the Act by virtue of Section 167(1)(a) of the Act prior to the statutory amendments introduced with effect from 07.05.2018. However, if they suffer any of the disqualifications under Section 164(2) on or after 07.05.2018, the clear implication of the provisos to Section 164(2) and 167(1)(a) of the Act are that they would demit their office in all companies other than the defaulting company. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n slate, for companies registered in India; (ii) Alleviative measures under the Scheme are for the benefit of all companies. It gives an opportunity to file belated documents in the MCA-21 Registry in respect of annual filings, without being subject to higher additional fee on account of delay; (iii) It grants immunity from launch of prosecution or of proceedings for imposition of penalty on account of delay associated with certain filings. For the said filings, only normal fee would be payable; (iv) Any defaulting company can file the belated documents, which were due for filing on any given date, as per the Scheme. Normal fee would be payable for such filing by the defaulting company under the Companies (Registration Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thus provides Directors of such companies a fresh cause of action to also challenge their disqualification qua the active companies. In the present case, the Petitioners are Directors of two companies one whose name has been struck off and one, which is still active. In such a situation, the disqualification and cancellation of DINs would be a severe impediment for them in availing remedies under the Scheme, in respect of the active company. The purpose and intent of the Scheme is to allow a fresh start for companies which have defaulted. In order for the Scheme to be effective, Directors of these companies ought to be given an opportunity to avail of the Scheme. The launch of the Scheme itself constitutes a fresh and a continuing cause o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decide to take certain alleviative measures for the benefit of all companies. This scheme has been introduced in view of the COVID-19 pandemic with the aim to enable a fresh start to defaulting companies and directors of such companies. The disqualification of defaulting companies was a step which was taken sometime in 2016-17 in order to ensure that filing of regular returns and compliances are undertaken strictly as per the provisions of the Act. It was also meant to be a measure to ensure that entities that are not conducting businesses are not misused as `shell companies for any improper activities. A substantial part of the disqualification period has already been completed. The introduction of the CFSS is itself a step for `p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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