Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2021 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 461 - HC - Companies LawSeeking for reactivation of DIN/DSC of the Directors - disqualification of directors under Section 164 and 167 of the Companies Act, 2013 - HELD THAT:- In cases where directors have been disqualified prior to 7th May, 2018, the proviso to Section 167(1)(a) would not apply and the directors would continue to be directors in companies other than the defaulting company. The disqualification of such directors qua active companies would therefore be liable to be set aside and their DIN and DSC’s reactivated. Directors who have been disqualified post 7th May 2018, qua other `active’ companies - HELD THAT:- The DINs and DSCs of disqualified directors of struck off companies, who are also directors in active companies, may be reactivated qua the active companies, in line with the spirit of the CFSS-2020. Directors of ‘active’ companies who have been disqualified - HELD THAT:- In cases where directors of ‘active’ companies have been disqualified, CFSS-2020 would squarely apply. Such directors would be entitled to avail of CFSS-2020 and file documents of the defaulting company. Disqualified directors of struck off companies seeking appointment as directors in other/new companies - HELD THAT:- This scheme has been introduced in view of the COVID-19 pandemic with the aim to enable a fresh start to defaulting companies and directors of such companies. The disqualification of defaulting companies was a step which was taken sometime in 2016-17 in order to ensure that filing of regular returns and compliances are undertaken strictly as per the provisions of the Act - A substantial part of the disqualification period has already been completed. The introduction of the CFSS is itself a step for `providing a fresh start’. Under such circumstances, continuation of the disqualification would defeat the Scheme and its purpose. The CFSS-2020 was last extended till 31st December 2020. If the scheme is extended beyond 30th December, 2020, directors who fall in any of the categories mentioned above ought to be given an opportunity to avail of the same. Since the Petitioners wish to start a new business, their DIN/DSC ought to be reactivated within a period of one week to enable them to conduct their fresh business in accordance with law - Petition disposed off.
|