Directors' Disqualification Revoked, IDs Reactivated, Registrar's Right to Revoke The court allowed the writ petition, directing the removal of disqualification of the petitioners as Directors and the deactivation of their Director ...
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Directors' Disqualification Revoked, IDs Reactivated, Registrar's Right to Revoke
The court allowed the writ petition, directing the removal of disqualification of the petitioners as Directors and the deactivation of their Director Identification Numbers. The court ordered the publication of these actions on the website and communication to the petitioners within two weeks. However, the Registrar of Companies retained the right to issue a fresh disqualification order if evidence emerged of false claims by the petitioners regarding their directorial status or their involvement in the company's activities.
Issues: 1. Failure of the Board of Directors to inform the Registrar of Companies about the resignation of the petitioners. 2. Disqualification of the petitioners as Directors in any company due to the failure of statutory compliances.
Issue 1 - Failure of Board of Directors to Inform Registrar of Companies: The petitioners, who were Directors of a company, submitted their resignation to the Board of Directors on 8th April, 2011. However, the Board failed to inform the Registrar of Companies about this resignation. The respondents did not dispute this fact. The petitioners sought the quashing of notices disqualifying them from being Directors due to the company's failure to comply with statutory requirements. The court noted that since the petitioners had ceased to be Directors from 8th April, 2011, they should not be penalized for the company's non-compliance.
Issue 2 - Disqualification of Petitioners as Directors: The court directed the respondents to take immediate steps to remove the petitioners' names from the list of disqualified directors and to deactivate their Director Identification Numbers (DIN). The court ordered that these actions should be published on the website and communicated to the petitioners within two weeks. However, the court clarified that the Registrar of Companies could issue a fresh disqualification order if any evidence emerged showing that the petitioners had falsely claimed to have never acted as Directors or if any proof surfaced indicating their involvement in the company's directorial activities.
In conclusion, the writ petition was allowed, and the court's directives were issued for the removal of disqualification and communication of the same to the petitioners, while reserving the right for the Registrar of Companies to take further action based on any new evidence.
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