Director disqualification and company striking-off notices stayed pending adjudication of notice compliance and natural justice concerns.

Challenges to director disqualification under Section 164(2)(a) and striking off of the company's name under Section 248(1) turned on alleged non-compliance with the prescribed notice procedure under Rule 3(2) and breach of natural justice. The petitioners contended that the impugned notices had serious civil consequences, while the respondents maintained that notice had been issued. Finding that the issues required adjudication, the Delhi HC granted interim protection, stayed operation of the disqualification notices until the next hearing, and directed revival of the petitioners' DIN numbers and digital signatures.

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Issues: Whether the notices disqualifying the petitioners as directors under Section 164(2)(a) of the Companies Act, 2013 and the striking off of the company's name under Section 248(1) of the Companies Act, 2013 could be sustained at the interim stage, including the challenge based on alleged non-compliance with the prescribed notice procedure and principles of natural justice.

Analysis: The petition raised a challenge to the disqualification notices and the consequential striking off action, with objections that notice under Section 248(1) was not served in the manner prescribed by Rule 3(2) of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 and that the impugned action had serious civil consequences. The respondents disputed these assertions and stated that notices had been issued. The Court found that the issues required adjudication and, pending further hearing, granted interim protection.

Outcome: Notice issued. Operation of the impugned disqualification notices was stayed till the next date of hearing, and the petitioners' DIN numbers and digital signatures were directed to be revived.

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