TMI Blog2020 (8) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... es, Guwahati being the respondent No.2 as regards their claim for continuing with the Director Identification Number (DIN) and Digital Signature Certificate (DSC) as well as to exclude their name from the list of disqualified directors. Upon such representation being made, the Registrar of Companies shall pass a detailed reasoned order as regards the entitlement of the petitioners to continue with the Directors Identification Number (DIN) and Digital Signature Certificate (DSC) and to get themselves removed from the list of disqualified directors. It is provided that the petitioners shall file such applications, if so advised, within a period 7 days from today. Till the expiry of 7 days from today, the respondent authorities shall unfree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uous period of three financial years be eligible to be reappointed 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. 4. The first proviso to Section 164(2)(a) provides that where a person is appointed as a director of a company which is in default, amongst others, of requirement of Section 164(2) (a), shall not incur the disqualification for a period of 6 months from the date of his appointment. 5. The provisions of Section 164(2) is extracted below:- (2) No person who is or has been a director of a company which- (a) has not filed financial statements or annual returns for any continuous period of three financial years; or (b) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice to the Respondents, call for the Records of the case and issue a Rule Calling upon the Respondents to show cause as to why a writ in the nature of Mandamus and/or any other writ, Order or Direction of like nature shall not be issued by directing the Respondents more particularly the Respondents No.2 to re-activate the DSC and DIN of the petitioners which was deactivated in purported exercise of power conferred under the Section 164 of the companies Act, 2013 and as to why a writ in the nature of Mandamus and/or any other writ, Order or direction of like nature shall not be issued by directing the Respondent Authorities more particularly the Respondent No.2 not to give effect of the impugned Disqualified Directors in respect of others co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being violated, there must be a representation for removal of such violation and upon consideration thereof, such request for removing the violation be refused. 10. The said principle of issuing a writ in the nature of mandamus is of a fundamental importance inasmuch as, when a writ court issues a writ in the nature of mandamus, it takes upon itself to determine as to whether the litigant had a legal right of his own making it entitled to a direction as claimed for. In the absence of the principle being followed, it is difficult for the writ court to arrive at its conclusion whether the legal right claimed for by the litigant is actually present or such right is being merely being claimed for by the litigant. 11. In the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities shall unfreeze the Directors Identification Number (DIN) and Digital Signature Certificate (DSC) issued in favour of the petitioners. However, if such application is not filed, the continuation of the order to unfreeze their Directors Identification Number (DIN) and Digital Signature Certificate (DSC) shall remain withdrawn and the Registrar of Companies shall be at liberty to take any action against the petitioners. In the event, application is filed the order to unfreeze the Directors Identification Number (DIN) and Digital Signature Certificate (DSC) shall continue till the Registrar of Companies may pass a reasoned order. 12. In terms of the above, the writ petition stands disposed of. - - TaxTMI - TMITax - Corporate Laws ..... X X X X Extracts X X X X X X X X Extracts X X X X
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