{"id":385527,"date":"2026-05-29T16:00:29","date_gmt":"2026-05-29T10:30:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=385527"},"modified":"2026-05-29T16:57:44","modified_gmt":"2026-05-29T11:27:44","slug":"dhc-stays-roc-penalty-orders-against-linkedin-india-in-sbo-disclosure-case","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/05\/29\/dhc-stays-roc-penalty-orders-against-linkedin-india-in-sbo-disclosure-case\/","title":{"rendered":"Delhi High Court Stays ROC Penalty Orders Against LinkedIn India in SBO Disclosure Dispute"},"content":{"rendered":"
\n

Delhi High Court:<\/span> In a writ petition challenging the penalty orders passed by the Registrar of Companies (ROC)\/adjudicating officer under Sections 89<\/a> and 90<\/a>, Companies Act, 2013<\/a> concerning declarations relating to beneficial interest in shares and significant beneficial ownership (SBO), a Single Judge Bench of Anish Dayal, J.<\/span>, stayed the operation of the impugned orders after prima facie finding substance in the petitioners’ contention that the ROC had travelled beyond the statutory framework governing SBO disclosures.<\/p>\n

The Court was dealing with a petition filed by LinkedIn Technology Information Private Limited and its Directors assailing the order dated 27 February 2026 passed by the Regional Director, Northern Region, whereby the appeal preferred against the order of the ROC \/adjudicating officer dated 22 May 2024 was dismissed. The ROC had imposed penalties upon the petitioners for alleged violation of Sections 89<\/a> and 90<\/a>, Companies Act, 2013<\/a> concerning declarations and disclosures relating to beneficial interest in shares and SBO.<\/p>\n

The petitioners contended that the declarations in question had already been filed on 29 January 2024 in compliance with the statutory requirements. It was further argued on behalf of the petitioners by Senior Advocate Gopal Subramanium that the ROC had travelled beyond the scope and purview of Sections 89 and 90 by relying upon disclosures made before the United States Securities and Exchange Commission (SEC) by the Chief Executive Officer of Microsoft Corporation, which according to the petitioners were distinct from and unrelated to the disclosure regime governing SBOs under Indian law. The petitioners also submitted that all petitioners had been unnecessarily roped into the penalty proceedings despite there being no occasion for them to make declarations under the aforesaid provisions.<\/p>\n

Upon hearing the submissions advanced on behalf of the petitioners, the Court issued notice in the matter. Notice was accepted on behalf of the respondents by the Senior Panel Counsel, who was granted 8 weeks’ time to file a reply. Taking note of the submissions made and observing that there were no instructions on behalf of the respondents at that stage, the Court deemed it fit to stay the operation of the impugned orders dated 22 May 2024 and 27 February 2026 till the next date of hearing. The matter has been directed to be listed on 6 October 2026.<\/p>\n

The Court’s prima facie consideration indicates that it found substance in the petitioners’ contention that the ROC may have exceeded the statutory framework of Sections 89<\/a> and 90<\/a>, Companies Act, 2013<\/a> while determining the obligation of disclosure and identifying entities falling within the ambit of SBO requirements. The Court also appeared to take note of the distinction sought to be drawn between disclosures made under the United States SEC regime and the disclosure obligations contemplated under Indian company law. In the absence of any substantive response from the respondents and considering the challenge raised to the legality of the impugned orders, the Court considered it appropriate to grant interim protection to the petitioners by staying the operation of the penalty orders pending further adjudication.<\/p>\n

[LinkedIn Technology Information (P) Ltd.<\/span> v. Union of India<\/span>, W.P.(C) 6677 of 2026, ordered on 15-5-2026<\/span>]<\/p>\n\n

Advocates who appeared in this case:<\/p>\n

For the Petitioner:<\/span> Gopal Subramanium, Sr. Adv., Sanjay Kumar, Abhishek Kumar Singh, Saksham Chaturvedi and Vedanshi Jalan, Advocates<\/p>\n

For the Respondents:<\/span> Vikrant Nilesh Goyal, SPC with Varun Pratap Singh, GP along with Rattan Goyal, Yash Basoya, Inderpreet Singh and Kunal Dixit, Advocates<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Delhi High Court granted interim relief to LinkedIn India and its Directors by staying ROC penalty orders passed for alleged non-compliance with SBO disclosure norms under Sections 89 and 90, Companies Act, 2013.<\/p>\n","protected":false},"author":67541,"featured_media":385541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2543,25414,68734,59261,105590,41307,105589,18381],"class_list":["post-385527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Delhi_High_Court","tag-interim-relief","tag-justice-anish-dayal","tag-linkedin","tag-penalty-orders","tag-significant-beneficial-ownership","tag-ss-89-and-90-companies-act-2013","tag-stay"],"yoast_head":"\nDHC stays ROC penalty orders against LinkedIn India in SBO disclosure case |SCC Times<\/title>\n<meta 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