IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Bela M. Trivedi, J.
Gaurang Balvantlal Shah S/O Balvantlal Shah – Petitioner
Versus
Union of India – Respondent
R/Special Civil Application Nos. 22435, 21344, 22436, 23153 of 2017 10234, 11817, 13876, 1842, 2383, 2384, 3165, 3367, 3831, 3924, 4492, 4865, 4897, 4982, 647, 6594, 6824, 9281 of 2018
Decided On : 18-12-2018
Companies Act, 2013 – Section 248 – Deactivation of DINs (Directors Identification Numbers) – Defaults contemplated under Section 164(2)(a) with regard to non-filing of financial statements or annual returns for any continuous period of three financial years would be defaults to be counted from financial year 2014-15 only and not 2013-14 – Respondents could not have treated Directors as disqualified/ineligible for a period of five years from 1.11.2016 to 1.11.2021, while publishing the impugned list under Section 248 of the Act of 2013 – Even if Registrar removes the name of a company from register of companies, and even if such company would stand dissolved under Section 248, statutory liabilities/obligations of such struck of company and its Directors would still remain to be discharged, in view of Section 250 of the said Act of 2013 – Respondents could not have deactivated DINs allotted to Directors under Section 154 of the Act, except under the circumstances mentioned in Rule 11 of the said Rules of 2014 – Impugned list set aside and respondents directed to activate respective Director Identification Numbers of petitioners forthwith – Petitions allowed. (Paras 33 to 35)
1. The basic challenge in all this batch of petitions is, to the action of the respondent No.1 Ministry of Corporate Affairs (hereinafter referred to as "MCA”), Union of India in publishing the list dated 12.9.2017 of Directors associated with “struck off companies” under Section 248 of the Companies Act, 2013 (hereinafter referred to as "the Act of 2013”) on the Website of the Ministry of Corporate Affairs, Government of India, to the extent, the said list shows the status of the petitioners as “disqualified” Directors. The petitioners have also challenged the action of the respondents in deactivating their DINs (Directors Identification Numbers) as a consequence of the publication of the said list. There being common questions of law and facts involved in all the petitions, they were finally heard together at the admission stage with the consent of the learned Advocates for the parties and are being disposed of this common order.
2. For the sake of convenience, the facts of the lead matter Special Civil Application No.22435 of 2017 are narrated herein under.
2.1 The petitioners of Special Civil Application No.22435 of 2017 - the Directors of Kalashree Investment Private Limited (hereinafter referred to as "the said Company”), have mainly prayed for the following reliefs:-
“(A) That the Hon’ble Court be pleased to issue a writ of or in the nature of mandamus or any other appropriate writ, order or direction commanding the respondents to enable the Director Identification Numbers (DIN) of the petitioners being 00165052 and 00183374 respectively, to permit the petitioners to operate and access the website of the Ministry of Corporate Affairs, Government of India and further commanding the respondents to treat the petitioners as qualified Directors and restraining the respondents from treating or taking any steps treading the petitioners as disqualified Directors;
(B) That the Hon’ble Court be pleased to issue a writ of or in the nature of certiorari quashing and setting aside the list of Directors associated with Struck Off Companies dated 12.9.2017 published on the website of the Ministry of Corporate Affairs, Government of India to the extent it includes the names of the petitioners as disqualified Directors.”
2.2 According to petitioners, they are also Directors in various other companies. On 9.3.2017, the respondent No.2 Registrar of Companies, Ahmedabad sent notice to the said company, stating inter alia that the company was not doing any business or operation, and therefore, the respondent No.2 intended to remove the name of the company from the Register of companies, and called upon the company to send its representation along with copies of relevant documents, if any, within 30 days from the date of receipt of the said notice. The said company thereafter was struck off from the register of companies as per Section 248 of the Act, 2013. According to the petitioners, the said company having been struck off from the register of companies and dissolved on 21.6.2017, the question of filing financial statements and annual returns did not arise, and therefore, the question of disqualification as contemplated under Section 164(2)(a) of the Act of 2013 also did not arise. However, the names of the petitioners were included in the list of disqualified Directors associated with the “struck off companies”, dated 12.9.2017 published on the Website of the Ministry of Corporate Affairs. The DINs i.e. Director Identification Numbers of both the petitioners were also disabled though the petitioners had not incurred any disqualification. As a result thereof, the petitioners were unable to utilize their DINs for filing the documents so far as the other non-defaulting companies in which they were the Directors were concerned. The petitioners, therefore, have filed the petition.
2.3 The petition has been resisted by the respondents
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