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        Companies Law

        2018 (3) TMI 2024 - HC - Companies Law

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        Directors with interim stay orders get DIN numbers activated despite company strike-off under scheme relief The Madras HC addressed petitioners' grievance regarding inability to utilize opportunities under a scheme despite obtaining interim stay orders against ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Directors with interim stay orders get DIN numbers activated despite company strike-off under scheme relief

                              The Madras HC addressed petitioners' grievance regarding inability to utilize opportunities under a scheme despite obtaining interim stay orders against director disqualification, as their companies were struck off and DIN numbers remained inactive. The court applied the Delhi HC Division Bench order as interim measure to maintain uniformity among similar cases. The HC directed respondents to immediately activate DIN numbers of all writ petitioners who had been granted interim stay orders, extending this relief to other pending petitioners with similar circumstances and interim orders before the court.




                              Issues:
                              1. Challenge to disqualification of directors and striking off of companies.
                              2. Inability to utilize Condonation of Delay Scheme due to struck-off companies.
                              3. Comparison with interim order of Delhi High Court.
                              4. Application of Delhi High Court's directions to the present cases.
                              5. Interim orders for activating DIN numbers and filing compliances under CODS-2018 Scheme.
                              6. Deposit of fees and charges under the scheme.
                              7. Directions for depositing charges and submission of documents.
                              8. Clarity on deposits made by directors and companies.
                              9. Timeline for filing counter affidavits and rejoinders.
                              10. Inclusion of all similarly situated persons under the interim order.

                              Analysis:
                              1. The judgment addresses the challenge faced by petitioners against their disqualification as directors and the striking off of their companies by the respondents. The petitioners were granted interim stay orders by the court, but they were unable to benefit from the Condonation of Delay Scheme due to the non-activation of their DIN numbers caused by the striking off of their companies from the Registrar of Companies.

                              2. The petitioners highlighted their grievance regarding the inability to utilize the Condonation of Delay Scheme despite the interim stay orders. This issue arose due to the companies being struck off, which prevented the activation of DIN numbers necessary for scheme participation.

                              3. The judgment references an interim order from the Delhi High Court, where similar circumstances were addressed. The Delhi High Court's directions aimed to protect the interests of parties, particularly concerning the activation of DIN numbers and compliance with the CODS-2018 Scheme.

                              4. The court decided to apply the directions issued by the Delhi High Court to the present cases pending before it. This decision was made to ensure uniformity and fairness among cases with similar facts and circumstances, emphasizing the need for consistency in interim measures.

                              5. The court issued interim orders directing the respondents to activate DIN numbers for petitioners with stay orders, allowing them to file compliances under the CODS-2018 Scheme as hard copies. The filings were to be preserved and subject to further court orders.

                              6. Specific directives were given for each petitioner to deposit fees and charges under the CODS-2018 Scheme in the court's registry. The court emphasized the importance of compliance with scheme requirements, including fee payments and document submissions.

                              7. Further instructions were provided regarding the submission of documents to the Registrar of Companies and the timeline for making deposits and filings, ensuring that compliance with the scheme was carried out effectively.

                              8. Clarity was given on the nature of deposits made by directors on behalf of their companies, emphasizing that duplicate payments were not necessary and specifying procedures for handling previous deposits.

                              9. The judgment set timelines for the filing of counter affidavits by respondents and rejoinders by petitioners, ensuring the progression of the legal process and the completion of pleadings.

                              10. The interim order extended to cover all similarly situated persons with pending writ petitions before the court, ensuring that the directives applied uniformly to all affected parties, without the need for separate orders for each individual.
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