Delhi HC: Scope and object of Ss. 164 and 248 of the Companies Act, 2013 to be analysed

Delhi High Court: A Division Bench comprising of Gita Mittal, Actg, CJ and C. Hari Shankar, J., adjudicated upon and listed matters relating to the Companies Act, 2013 for further hearing on 24.07.2018.

The writ petitions adjudicated upon jointly were filed against notices dated 06.09.2017 and 12.09.2017 issued under Section 164(2)(a) of the Companies Act, 2013 disqualifying the petitioners from being directors in companies wheresoever they may be directors. The disqualification took place because of default in submitting returns which were statutorily required to be filed with the Registrar of Companies (hereinafter ROC) with regard to the affairs of the company in question, for a continuous period of three financial years. Additionally, some of the writ petitions also alleged misuse of powers under Section 248(1) of the Companies Act, 2013, claiming that the Registrar of Companies additionally struck off the name of the said companies from the register of companies. The writ petitioners claim that the disqualification of directors as well as the striking off the names of the companies was in gross violation of the principles of natural justice.

The Court, noted that the issues raised in the writ petitions before it required adjudication and were of grave importance as they raised questions about the working of, spirit, intention and object of Sections 164 and 248 of the Companies Act, 2013. Further, interim stay was granted in the cases of all writ petitioners. The Court also allowed the petitioners to avail cancellation of disqualification under the Condonation of Delay Scheme, 2018. [Atul Khosla v. Union of India, WP (C) 9439 of 2017, order dated 22.03.2018]

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