{"id":216221,"date":"2019-06-28T13:20:42","date_gmt":"2019-06-28T07:50:42","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=216221"},"modified":"2019-07-12T17:10:47","modified_gmt":"2019-07-12T11:40:47","slug":"bom-hc-disqualification-of-directors-batch-of-petitions-to-be-heard-in-reference-to-s-164-2a-of-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/28\/bom-hc-disqualification-of-directors-batch-of-petitions-to-be-heard-in-reference-to-s-164-2a-of-companies-act-2013\/","title":{"rendered":"Bom HC | Disqualification of Directors: Batch of petitions to be heard in reference to S. 164 (2)(a) of Companies Act, 2013"},"content":{"rendered":"

Bombay High Court:\u00a0<\/strong>The Division Bench comprising of S.C. Dharmadhikari and G.S. Patel, JJ. has tagged a batch of petitions to be heard in regard to disqualification of directors due to failure in filing of returns.<\/p>\n

Anil Singh, learned Additional Solicitor General has agreed to address the Court in these matters and prays for two weeks time.<\/p>\n

No interim orders have been passed by the Court, though the Court has granted liberty to the parties to revive their applications for interim relief.<\/p>\n

Matter has been listed for 10-07-2019. [Vinodkumar Dulchand Daga v. Registrar of Companies, Mumbai, 2019 SCC OnLine Bom 1127<\/b><\/a>, decided on 19-06-2019]<\/p>\n

\n

For reference and understanding of the issue:\u00a0<\/strong><\/p>\n

[Recently Karnataka High Court dealt with similar issue in the following case]<\/strong><\/p>\n

Karnataka High Court: <\/b>Directors of either public companies or private companies or both were all aggrieved by their disqualification as directors as per the list issued by the Ministry of Corporate Affairs under Section 164(2) (a) and Section 167(1)(a).
\n<\/b><\/p>\n

They were faced with the consequences as stipulated under Section 164(2) and Section 167(1)(a) of the Companies Act, particularly, its proviso as inserted by the Amendment Act, 2017.<\/p>\n

The High Court held that: “the directors of the struck off companies under Section 248 of the Act do not per se get disqualified. But, if the said company has also not complied with Section 164(2)(a) of the Act, then the said company being a defaulting company, the directors of such a company get disqualified.”<\/em><\/p>\n

Further, the Court ordered that:<\/p>\n

    \n
  • Where the disqualification of the petitioners is based by taking into consideration any financial year \u201cprior to 01-04-2014 as well as subsequent thereto\u201d while reckoning continuous period of three financial years under Section 164(2)(a) of the Act, irrespective of whether the petitioners are directors of public companies or private companies, such a disqualification being bad in law, the Writ Petitions are allowed<\/strong><\/li>\n
  • If disqualification has occurred under the provisions of the 1956 Act in respect of the public companies, the writ petitions are dismissed<\/strong><\/li>\n
  • Restoration of the DIN of those directors whose disqualification has been quashed by this Court;<\/li>\n
  • If the disqualification of the directors is based by taking into consideration three continuous financial years subsequent to 01-04-2014, they stand disqualified under the Act<\/strong><\/li>\n
  • Where the disqualification of the petitioners is based by taking into consideration any financial year prior to 01-04-2014 in respect of private companies, such disqualification being bad in law, the writ petitions are allowed<\/strong><\/li>\n
  • Writ Petitions, wherein the challenge is also made to the vires of Section 164(2)(a), and\/or 167(1)(a) and\/or proviso to Section 167(1)(a) of the Act, are dismissed. <\/strong>[Yashodhara Shroff v. Union of India, WP No. 52911 of 2017, decided on 12-06-2019]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    Bombay High Court:\u00a0The Division Bench comprising of S.C. Dharmadhikari and G.S. Patel, JJ. has tagged a batch of petitions to be heard <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[36313,36311,36314,36312],"class_list":["post-216221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-batch-of-petitions","tag-disqualification-of-directors","tag-failure-to-file-return","tag-section-1642a-of-companies-act-2013"],"yoast_head":"\nBom HC | Disqualification of Directors: Batch of petitions to be heard in reference to S. 164 (2)(a) of Companies Act, 2013 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/28\/bom-hc-disqualification-of-directors-batch-of-petitions-to-be-heard-in-reference-to-s-164-2a-of-companies-act-2013\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bom HC | Disqualification of Directors: Batch of petitions to be heard in reference to S. 164 (2)(a) of Companies Act, 2013\" \/>\n<meta property=\"og:description\" content=\"Bombay High Court:\u00a0The Division Bench comprising of S.C. 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2019","format":false,"excerpt":"Registrar of Companies (ROCs) are in the process of\u00a0\"Identification and flagging of Disqualified Directors under S. 164(2)(a) of Companies Act, 2013\"\u00a0for their default of non-filing of financial statement or annual return for a continuous period of three financial years i.e. 2015-16, 2016-17 and 2017-18. 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Nagarathna, J., disposed of the petitions seeking the provisions of Sections 164(2) and 167(1)(a) and the proviso to Section 167(1)(a) of the Companies Act, 2013, to be held unconstitutional. In the pertinent matter, the petitioner sought for declaring Section 164(2) of the Companies Act, 2013 (Act) and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221924,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/08\/del-hc-scheme-of-ss-1642-and-1671a-of-companies-act-explained-in-respect-to-disqualification-of-directors-on-default-of-filing-returns\/","url_meta":{"origin":216221,"position":2},"title":"Del HC | Scheme of Ss. 164(2) and 167(1)(a) of Companies Act explained in respect to disqualification of directors on default of filing returns","author":"Bhumika Indulia","date":"November 8, 2019","format":false,"excerpt":"Delhi High Court: Vibhu Bakhru, J. while addressing the petitions filed in respect to the impugned list of directors stated to have been disqualified under clause (a) of Section 164(2) of the Companies Act, 2013, explained with reasons and logic, the scheme of Section 164(2) and Section 167(1)(a) of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":194511,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/03\/29\/delhi-hc-scope-and-object-of-ss-164-and-248-of-the-companies-act-2013-to-be-analysed\/","url_meta":{"origin":216221,"position":3},"title":"Delhi HC: Scope and object of Ss. 164 and 248 of the Companies Act, 2013 to be analysed","author":"Saba","date":"March 29, 2018","format":false,"excerpt":"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\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":196387,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/24\/calcutta-hc-passes-interim-order-allowing-disqualified-directors-to-continue-despite-disqualification-under-s-1642-of-companies-act\/","url_meta":{"origin":216221,"position":4},"title":"Calcutta HC passes interim order allowing disqualified directors to continue despite disqualification under Section 164(2) of Companies Act","author":"Saba","date":"May 24, 2018","format":false,"excerpt":"Calcutta High Court:\u00a0 The Court recently passed an interim order where it allowed certain people who were directors in multiple companies to continue in their posts despite the disqualification laid down in Section 164(2)(a) of the Companies Act, 2013 (\u201cAct\u201d). 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