TMI Blog2020 (3) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... art of the said sub‐section with the second part thereof. Sub‐section (2) of Section 164 starts with the expression no person, who is or has been a Director of a company , which has committed defaults specified therein, while the sub‐section ends with the expression shall be eligible to be re‐appointed as a Director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so - a specific distinction is made in the sub‐section between the directorship of a person of a defaulting company, in respect of which the eligibility of 're‐ appointment' as a Director has been prevented, whereas, as regards other companies, the term 'a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4733 (W) of 2019, 669 (W) of 2018, W.P. No.29008 (W) of 2017, W.P. No.1121 (W) of 2020, W.P. No.963 (W) of 2020 Sabyasachi Bhattacharyya, J. For the petitioners: Mr. Saptarshi Banerjee, Mr. A.K. Upadhyay For the petitioners: Mr. Saptarshi Banerjee, Mr. Somesh Ghosh, For the Union of India: Mr. Kamal Singh, Subhankar Chakraborty, Mr. Shiv Chandra Prasad, Mr. S. Tiwari JUDGMENT Sabyasachi Bhattacharyya, 1. The common question involved in all the present writ petitions is, whether the disqualification of the petitioner's Director Identification Number (DIN) would operate in respect of the defaulting company only or all other companies in respect of which the petitioner is a Director. 2. Learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e defaulting company. 5. Section 164(2) of the 2013 Act, if construed in proper perspective, indicates that the legislature intentionally made a distinction in the language of the first part of the said sub‐section with the second part thereof. Sub‐section (2) of Section 164 starts with the expression no person, who is or has been a Director of a company , which has committed defaults specified therein, while the sub‐section ends with the expression shall be eligible to be re‐appointed as a Director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so . 6. Thus, a specific distinction is made in the sub‐section between the direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well, in which case the penalty would far exceed the offence, instead of being commensurate therewith. 10. Accordingly, W.P. No.700(W) of 2020, W.P. No. 699(W) of 2020, W.P. No. 698(W) of 2020, W.P. No. 23992(W) of 2018, W.P. No. 22859(W) of 2019, W.P. No.4733(W) of 2019, W.P. No.669(W) of 2018, W.P. No. 29008(W) of 2017, W.P. No.1121(W) of 2020 and W.P. No. 963(W) of 2020 are thus disposed of, thereby setting aside the disqualification of the DIN of the respective petitioners in respect of other companies, than the company in respect of which the default has been allegedly committed. However, such disqualification shall continue to operate in respect of the defaulting company. 11. It is, however, made clear that in cases where the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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