( 1 ) THE petitioners have challenged the constitutional validity of Section 274 (1) (g) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000 with effect from December 13, 2000 [hereinafter referred to as the said act ]. The petitioners have also prayed for a declaration that the said provisions are ultra vires the Constitution of India more particularly Article 14 thereof.

( 2 ) THE petitioner No. 1 is a Company incorporated and registered under the Companies Act, 1956, and petitioner No. 2 is a shareholder of the petitioner No. 1 Company. Petitioner No. 1 Company is incurring losses and is unable to redeem debentures on due date, i. e. , 30th September 2003 (1st installment ). Considering the provision of Section 274 (1) (g) of the Act, the Directors of the petitioner company would stand disqualified for being appointed as Directors in another companies after 29th September 2004 and therefore the Company has preferred the present Special Civil Application challenging the vires of Section 274 (1) (g) of the Companies Act. Section 274 of the Companies Act reads as under;"s. 274. Disqualification of directors " (1) A person shall not be capable