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2020 (9) TMI 1088 - HC - Companies LawCompanies Fresh Start Scheme (CFSS) 2020 - Defaulting company - Publication of the name of the Petitioner in the list of disqualified directors - Disqualification as a director under Section 164 of the Companies Act, 2013 - alleged non-compliance by DCDPL in filing its returns from 2014-2017. Whether the DIN of the Petitioner is liable to be activated for the two companies ABMR and DCD Grand? - HELD THAT:- The DIN of the Petitioner herein was deactivated and he was disqualified prior to the proviso to Section 167(1)(a) taking effect. Thus, qua ABMR and DCD Grand, the Petitioner’s disqualification is not sustainable. Whether the Petitioner can be considered as a Director of DCDPL? - HELD THAT:- The ROC’s stand that the shareholders can nominate a new director and approval for the same can be sought, would not be an answer, as the same could in effect result in dummy directors being appointed to Companies, which is exactly what the new provisions may have intended to avoid. In any event, so long as the present case is covered by the Mukut Pathak [2019 (11) TMI 319 - DELHI HIGH COURT] decision, the Petitioner does not demit office and would be entitled to act as a Director in DCDPL. Whether the Petitioner can file the Returns on behalf of the defaulting company DCDPL, which wishes to avail of the Scheme? - HELD THAT:- The answer to the same would be in the affirmative. As held by this Court recently, vide order dated 2nd September 2020, in Sandeep Agarwal & Anr. Vs. Union of India & Anr [2020 (9) TMI 175 - DELHI HIGH COURT] the purpose of the Scheme is to provide an opportunity for active companies, who may have defaulted in filing of documents, to put their affairs in order. The Scheme is a fresh lease of life given to defaulting companies, which are not yet declared `Inactive’, to file their returns and do their businesses in accordance with law - The scheme is an ENABLER and not a DISABLER for defaulting but active companies. The Petitioner would be entitled to avail of the Scheme to file documents of the defaulting company, which is still an active company whose name has not been struck off. Petition allowed.
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