Court sets aside Director Identification Number (DIN) disqualification decision, except in non-compliant company.

The court allowed the petition, setting aside the decision to disqualify the petitioner's Director Identification Number (DIN) status in all companies where they were a director, except the non-compliant company. No costs were awarded, and urgent certified copies of the order were to be made available to the parties upon compliance with necessary formalities.

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Issues:
Petitioner's Director Identification Number (DIN) cancellation due to default by one company affecting all companies where the petitioner was a director.

Analysis:
The petitioner's grievance was that their DIN was canceled due to default by one company, affecting all companies where they were a director. The petitioner argued that rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014 pertains only to the defaulting company and not to other companies where the director operates. The petitioner relied on two unreported judgments supporting this proposition. However, the respondent authorities cited a Division Bench judgment stating that disqualification in respect of the DIN operates not only in the erring company but all other companies where the person is a director as well.

The Division Bench held that interference in an intra-court mandamus appeal is not warranted unless palpable infirmities or perversity are noticed in the impugned order. The judgment cited by the respondent authorities was found irrelevant to the present case, while the co-ordinate Bench judgments cited by the petitioner were considered binding. The court concluded that the respondent authorities acted outside the law by disqualifying the petitioner from all companies where they were a director, not just the non-compliant company. Consequently, the court allowed the petition, setting aside the decision to disqualify the petitioner's DIN status in all companies except the non-compliant one.

In the final ruling, the court allowed the petition and set aside the decision disqualifying the petitioner's DIN status in all companies where they were a director, except the non-compliant company. No costs were awarded, and urgent certified copies of the order were to be made available to the parties upon compliance with necessary formalities.

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