Interim Order Restoring DIN Numbers for Directorial Duties & Company Closure

The Court granted an interim order for the restoration of the petitioners' DIN numbers to enable them to fulfill their directorial duties and proceed with closing the company following legal procedures. The Court recognized the necessity of restoring the DIN numbers for the petitioners to discharge their functions as Directors in other companies as well. A stay of proceedings was ordered to facilitate compliance with the Condonation of Delay Scheme, with instructions for necessary actions to be completed by a specified deadline. The judgment emphasized the importance of adhering to legal procedures for closure and regulatory compliance within the prescribed timeline.

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Issues:
1. Granting of interim order for restoration of DIN numbers of the Directors.
2. Disqualification of Companies and the remedy available to the petitioners.
3. Consideration of the petitioners' intention to close the company and follow the procedure established by law.

Analysis:
1. The petitioners requested an interim order to restore their DIN numbers to submit annual returns and financial statements of their company. The counsel for the petitioners argued that the facts of this case were similar to other cases where interim orders were granted. The main contention was the need for a stay of proceedings to follow the Condonation of Delay Scheme. The Assistant Solicitor General opposed the interim order, suggesting that the petitioners should approach the Tribunal for remedies under Section 252 of the Act. The Court considered the submissions and decided that restoring the DIN numbers was essential for the petitioners to fulfill their directorial duties and proceed with closing the company following legal procedures.

2. The Court acknowledged the necessity of restoring the DIN numbers for the petitioners to discharge their functions as Directors in other companies as well. It was noted that the petitioners intended to close their company by following the established legal procedure, which was deemed to serve the interests of justice. Consequently, the Court ordered a stay of proceedings to disable the DIN of the petitioners and directed the 1st respondent to restore their DIN numbers to enable compliance with the COD Scheme. The petitioners were instructed to deposit charges and submit necessary documents before the Registrar of Companies by the extended deadline of 30.04.2018.

3. The Court scheduled the next hearing after four weeks for further proceedings. The judgment emphasized the importance of restoring the DIN numbers for the petitioners to carry out their directorial responsibilities and avail the benefits of the COD Scheme. The decision highlighted the significance of following legal procedures for closure and the need for compliance with regulatory requirements within the specified timeline.

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