JUDGMENT

Dated this the 25th day of January, 2022 The petitioners are before this Court seeking to direct the respondents to restore and reactivate the Director Identification Number of the petitioners (06878336 and 06878368) and their Digital Signature Certificates so as to enable the petitioners to file the statutory returns and statements before the authorities as per law and to represent those Companies as their Director without any interruption.

2. The petitioners state that they are shareholders and Directors on the Board of M/s.Tak Natural and Organic Ingrediants Exim Private Limited. The petitioners when attempted to use the Digital Signature Certificates along with their respective DIN to file annual returns on the website of the 1st respondent, the petitioners received a message to the effect that ‘Director Disqualified’. Further, the DIN status of the petitioners is also showing ‘Disqualified by ROC under Section

164(2)’. From the website, the petitioners learnt that they were disqualified as Directors from 01.11.2018 to 31.10.2023.

3. The petitioners submit that in view of the disqualification and de-activation of DIN number, the petitioners are not able to function or act as Directors on the Board of any other Company or Limited Liability Partnership. They are not in a position to upload necessary statutory returns under the Companies Act, 2013. The de-activation of DIN is illegal and unwarranted, contended the petitioners.

4. The learned Assistant Solicitor General of India (ASGI) appeared on behalf of respondents 1 to 3. The learned ASGI contested the writ petition and controverted all the material averments contained in the writ petition. The learned ASGI submitted that the petitioners were disqualified for holding the office of Directors in Companies under Section 164(2) of the Companies Act, 2013. Since they are disqualified, their DIN numbers were de-activated. There is no illegality on the de-activation of the DIN number.

5. Heard the learned counsel for the petitioners and the learned ASGI representing the respondents.

6. This Court has considered the issue of de-activation of DIN in the context of disqualification of Directors under Section 164(2) of the Companies Act. This Court considered the matter in Zacharia Maramkandathil Mohan v. Union of India [2021 (4) KLT 493] and held that the DINs of the petitioners allotted under Rule 10 of the Companies (Appointments and Qualifications of Directors)Rules, 2014 are not liable to be deactivated or cancelled solely for the reason that the petitioners stand disqualified for appointment/reappointment as Directors of Companies by operation of Section 164(2) of the Companies Act, 2013. In view of the law laid down by this Court in Zacharia Maramkandathil Mohan (supra), the writ petition is liable to be allowed.

In the circumstances, the writ petition is allowed following the judgment of this Court in Zacharia Maramkandathil Mohan (supra) and consequently, the respondents are directed to restore and re-activate the DIN numbers and Digital Signature Certificates of the petitioners forthwith.