Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. KARTHIKEYAN, J.
Khushru Dorab Madan - Petitioner
Versus
Union of India, represented by its Ministry of Corporate Affairs & Ors. - Respondents
W.P. Nos. 13616, 13617, 13630, 18888, 21057, 21059, 21060, 23952, 23953, 31110, 31824, 34121, 34126, 34208, 34213, 34297 of 2018, 179, 181, 491, 496, 501, 505, 786, 798, 804, 815, 818, 859, 862, 864, 878, 881, 882, 883, 884, 885, 887, 1292, 1295, 1417, 1424, 1429, 1436, 1441, 1470, 1474, 1476, 1478, 1540, 1587, 1595, 1544, 1637, 1735, 1743, 1765, 1945, 1994, 1995, 2003, 2085, 2088, 2195, 3070, 3073, 2267, 2273, 2277, 2280, 2420, 2425, 2428, 2432, 2437, 2424, 2435, 2452, 2455, 2524, 2535, 2763, 2801, 2806, 2819, 2830, 2836, 2858, 2923, 2925, 2976, 3042, 3047, 3101, 3116, 3141, 3149, 3206, 3291, 3296, 3298, 3301, 3409, 3415, 3478, 3481, 3517, 3521, 3527, 3531, 3535, 3555, 3563, 3631, 3667, 3672, 3675, 3688, 3695, 3754, 3765, 3772, 3762, 3782, 3791, 3795, 3801, 3970, 3976, 3799, 3820, 3824, 3925, 3978, 3989, 4020, 4027, 4034, 4036, 4049, 4055, 4057, 4073, 4074, 4101, 4102, 4105, 4140, 4171, 4183, 4188, 4184, 4186, 4212, 4218, 4223, 4298, 4305, 4307, 4334, 4343, 4408, 4412, 4415, 4420, 4425, 4456, 4553, 4555, 4559, 4564, 4581, 4611, 4613, 4651, 4662, 4665, 4669, 4666, 4672, 4674, 4703, 4763, 4768, 4798, 4802, 4805, 4852, 4853, 4854, 4859, 4947, 4950, 4953, 4971, 5169, 5351, 5371, 5380, 5406, 5433, 5442, 5450, 5453, 5464, 5466, 5472, 5477, 5570, 5595, 5695, 5725, 5765, 5766, 5783, 5787, 5791, 5806, 5813, 5815, 5843, 5915, 5917, 5924, 5930, 5928, 6016, 6104, 6156, 6183, 6196, 6200, 6229, 6236, 6282, 6313, 6365, 6367, 6414, 6424, 6459, 6465, 6466, 6502, 6508, 6529, 6537, 6535, 6541, 6546, 6568, 6581, 6643, 6654, 6772, 6933, 6947, 7023, 7072, 7122, 7152, 7157, 7160, 7340, 7511, 7512, 7589, 7610, 7701, 7704, 7706, 7710, 7712, 7718, 7749, 7809, 7814, 7817, 7818, 7861, 7939, 7947, 7941, 7951, 7981, 7995, 8001, 8003, 8005, 8009, 8062, 8013, 8109, 8225, 8234, 8263, 8283, 8292, 8314, 8323, 8329, 8338, 8349, 8437, 8454, 8457, 8465, 8553, 8580, 8586, 8554, 8621, 8661, 8664, 8667, 8670, 8676, 8680, 8679, 8683, 8715, 8717, 8723, 8752, 8783, 8788, 8795, 8848, 8989, 9032, 9034, 9043, 9046, 9162, 9186, 9193, 9197, 9251, 9262, 9266, 9282, 9308, 9361, 9367, 9370, 9364, 9368, 9434, 9621, 9629, 9639, 9646, 9677, 9704, 9714, 9751, 9757, 9777, 9786, 9901, 9919, 9975, 9990, 9992, 10021, 10042, 10045, 10046, 10061, 10069, 10095, 10105, 10111, 10135, 10140, 10144, 10147, 10226, 10237, 10271, 10274, 10276, 10277, 10279, 10280, 10360, 10349, 10407, 10410, 10412, 10417, 10419, 10472, 10478, 10488, 10546, 10549, 10560, 10579, 10587, 10596, 10588, 10637, 10702, 10836, 10856, 10921, 10925, 10940, 11006, 11010, 11008, 11015, 11018, 11021, 11040, 11049, 11051, 11054, 11116, 11201, 11204, 11241, 11282, 11345, 11347, 11356, 11436, 11499, 11500, 11504, 11546, 11556, 11559, 11562, 11567, 11596, 11600, 11602, 11615, 11646, 11708, 11790, 11824, 11829, 11832, 11833, 11839, 11889, 11892, 11890, 11893, 11905, 11912, 11964, 11965, 11966, 11968, 11969, 12028, 12026, 12038, 12101, 12104, 12109, 12112, 12103, 12115, 12129, 12137, 12139, 12142, 12153, 12155, 12156, 12157, 12196, 12222, 12240, 12267, 12269, 12273, 12278, 12285, 12307, 12312, 12320, 12308, 12313, 12319, 12333, 12334, 12376, 12382, 12398, 12409, 12442, 12430, 12452, 12459, 12462, 12469, 12505, 12595, 12601, 12597, 12622, 12645, 12626, 12650, 12689, 12692, 12698, 12708, 12726, 12744, 12739, 12746, 12770, 12820, 12831, 12841, 12849, 12887, 12905, 12920, 12939, 12951, 12958, 12967, 12980, 12975, 13003, 13011, 13024, 13038, 13042, 13094, 13112, 13117, 13126, 13162, 13201, 13208, 13231, 13237, 13312, 13317, 13330, 13339, 13292, 13350, 13354, 13353, 13387, 13402, 13436, 13438, 13440, 13465, 13477, 13494, 13484, 13543, 13491, 13535, 13589, 13667, 13711, 13729, 13731, 13732, 13750, 13752, 13756, 13763, 14235, 15154, 15253, 15354, 15419, 15423, 15505, 15550, 15552, 15604, 15637, 15840, 15645, 15712, 15722, 15730, 15737, 15740, 15749, 15812, 15824, 15829, 15914, 15916, 15990, 15998, 16053, 16057, 16070, 16107, 16115, 16186, 16083, 16200, 16219, 16321, 16337, 16546, 16548, 16602, 16606, 16634, 16717, 16757, 16760, 16763, 16835, 16831, 16842, 16843, 16952, 16958, 17001, 17009, 17019, 17067, 17081, 17082, 17124, 17234, 17312, 17767, 17876, 17924, 18201, 18202, 18206, 18242, 18259, 18279, 18282, 18361, 18379, 18511, 18521, 18526, 18573, 18574, 18615, 18795, 18928, 19047, 19072, 19074, 19085, 19111, 19126, 19156, 19465, 19611, 19619, 19691, 19694, 19773, 19874, 19880, 20093, 20238, 20363, 20375, 20444, 20453, 20731, 20741, 20746, 20835, 20857, 20859, 20881, 20885, 20923, 20936, 21012, 21074, 21078, 21080, 21083, 21088, 21191, 21194, 21297, 21310, 21312, 21313, 21331, 21783, 21820, 21866, 21906, 21908, 21909, 21910, 22116, 22118, 22214, 22255, 22262, 22306, 22315, 22375, 22743, 22747, 22751, 22748, 22753, 22756, 22790, 22961, 23022, 23144, 23137, 23349, 23353, 23357, 23426, 23429, 23456, 23551, 24461, 24597, 24610, 24621, 24644, 24649, 24743, 24746, 24776, 24797, 24809, 24440, 24990, 24993, 25002, 25004, 25058, 25918, 25925, 25940, 26142, 26252, 26254, 26261, 26302, 26319, 26337, 26340, 26404, 26411, 26413, 26423, 26433, 26441, 26526, 26538, 26556, 26565, 26567, 26619, 26624, 26691, 26796, 26810, 26845, 26847, 26849, 26932, 27045, 27179, 27180, 27181, 27308, 27442, 27463, 27467, 27590, 27625, 27627, 27628, 27631, 27632, 27702, 27706, 27771, 27935, 27938, 27995, 28050, 28069, 28075, 28078, 28083, 28157, 28159, 28167, 28252, 28414, 28454, 28455, 28459, 28463, 28651, 28656, 28660, 28881, 28912, 28914, 28975, 29054, 29418, 29464, 29467, 29470, 29673, 29677, 30035, 30037, 30250, 30393, 30394, 30644, 30646, 30732, 30736, 30752, 30757, 30761, 30766, 30770, 30938, 30948, 31294, 31296, 32403, 32409, 10757, 12167, 12173, 17532, 18249, 32589, 32594, 32614, 32720, 32764, 32947, 32949, 33057, 34001, 34004, 34010, 34354, 34358, 34396, 18877, 18878, 33513, 33807, 33829, 33880, 34030, 34157, 34814, 35384, 35388, 35618, 35627 of 2019, 50, 78, 79, 82, 121, 179, 211, 367, 750, 806, 872 of 2020
Decided On : 27-01-2020
Constitution of India – Article 226 – Praying for the issue of a Writ of Certiorarified Mandamus calling for the records – Second respondent relating to the impugned order uploaded in the website of the first respondent in so far as the petitioner herein is concerned, quash the same as illegal, arbitrary and devoid of merit and consequentially direct the respondents herein to permit the petitioner to get reappointed as Director of any company or appointed as Director in any company without any hindrance – Writ Petitions have been filed in the nature of Writ of Certiorarified Mandamus calling for the records of the second respondent, Registrar of Companies, Chennai with relation to the impugned order uploaded in the website of the first respondent, namely Ministry of Corporate Affairs New Delhi and quash the same – Issues raised in all the Writ Petitions and the grievance of the writ petitioners are similar – By consent of all the counsels, a common order is passed in all the Writ Petitions – As an illustration, the facts in as stated –Held, However, whenever law holds that if for three consecutive years, the annual returns or financial statements has not been filed, then disqualification of the Directors would be automatically attracted, then, as a corollary it naturally follows that the Director Identification Number has to be deactivated –Said Director Identification Number co-exists with the office of Directorship. Reliance was placed on the term that it shall be for life – Interpretation of this term life can only mean that the life of the DIN can exist only for till the life of the office of Directorship survives and not for the entire life of the individual Director – Holding that an individual who was a Director in a company and had been allotted DIN and would be able to hold on to it till his life, even though he relinquishes the office of Directorship, defines logic – Director Identification Number can be exist only during the period when an individual holds office of Directorship – It may be reactivated when the individual resumes the office of Directorship. During his/her lifetime only on Director Identification Number can be allotted – Writ Petitions are dismissed.
ORDER :
PRAYER: Petition under Article 226 of the Constitution of India, praying for the issue of a Writ of Certiorarified Mandamus calling for the records of the second respondent relating to the impugned order dated 01.11.2017 uploaded in the website of the first respondent in so far as the petitioner herein is concerned, quash the same as illegal, arbitrary and devoid of merit and consequentially direct the respondents herein to permit the petitioner to get reappointed as Director of any company or appointed as Director in any company without any hindrance.
The Writ Petitions have been filed in the nature of Writ of Certiorarified Mandamus calling for the records of the second respondent, Registrar of Companies, Chennai with relation to the impugned order dated 01.11.2017 uploaded in the website of the first respondent, namely Ministry of Corporate Affairs New Delhi and quash the same.
2. The issues raised in all the Writ Petitions and the grievance of the writ petitioners are similar. By consent of all the counsels, a common order is passed in all the Writ Petitions.
3. As an illustration, the facts in W.P. No. 13616 of 2018 as stated.
4. The writ petitioner therein Khushru Dorab Madan, was a Director bearing DIN No. 00464331 in M/s. Madan Shipping Private Limited. He was also occupying office of Directorship in (a) Federation of Motor Clubs of India Private Limited; (b) OSA Shipping Private Limited; (c) G & U Logistics (India) Private Limited; (d) Speedworks Trading Private Limited; and (e) Seawind Shipping Private Limited.
5. The petitioner was a promoter of M/s. Madan Shipping Private Limited. Owing to various circumstances, M/s. Madan Shipping Private Limited was not carrying on any operations from the year 2008. The first respondent, namely, Ministry of Corporate Affairs, New Delhi, issued a show cause notice under Section 248(1) of the Companies Act 2013 for striking off the name of the Company from the Register of the Companies for non filing of annual returns for a continuous period of three years. The petitioner unfortunately, again owing to various circumstances, omitted to reply to the notice. Thereafter, the first respondent struck strike off the Company under the provisions of Section 248 of the Companies Act 2013 published by the second respondent in the Gazattee Notification. The second respondent released a list of disqualified Directors, who had been disqualified under Section 164(2)(a) of the Companies Act 2013. The name of the petitioner found place in the list. By virtue of such disqualification, the petitioner was prohibited from being appointed or reappointed as a Director in any other Company. The petitioner claimed that he had not been given notice prior to such disqualification. Moreover, the Director Identification Number of the petitioner was also deactivated. It is under these circumstances that the Writ Petition had been filed.
6. The writ petitioners in all the other writ petitions also suffered the same fate. They all stood disqualified from the Company in which they were Directors wherein annual returns had not been filed for a continuous period of three years and as a consequence thereof, they had to vacate office in all the other companies where they held the office of Directorship. Their Director Identification numbers were also deactivated.
7. Heard extensive arguments advanced on behalf of the petitioners.
8. Mr. Aravind Pandian, learned Senior Counsel who led the arguments, questioned the act of the respondents on the following grounds:-
(1) Lack of Jurisdiction; (2) Failure to issue notice before disqualification; (3) Impermissibility to deactivate the Director Identification Number; and (4) Sustainability of the order to vacate office of Directorship in all other Companies.
9. The above grounds were also broadly urged by other counsels, who also argued on behalf of the writ petitioners.
10. With respect to lack of jurisdiction, it had been stated that under Section 164(2) of the Companies Act 20
SupremeToday
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
