Court invalidates execution application due to lack of Director Identification Numbers ( )

The court set aside the orders related to the execution application, deeming it non-maintainable due to directors' lack of Director Identification Numbers (DINs). The resolution authorizing the application was invalidated as the directors were disqualified from acting without DINs. The court granted liberty to the company to seek recovery through appropriate legal means.

---

---

Issues Involved:
1. Competence to file the execution application.
2. Validity of the resolution authorizing the execution application.
3. Requirement of Director Identification Number (DIN) for directors.
4. Calculation of the decretal amount and interest.

Detailed Analysis:

1. Competence to File the Execution Application:
The petitioner contended that the execution application was not filed by a competent person, as it was based on a resolution from a dissolved company (M/s Harbans Singh Tuli and Sons Builders Pvt. Ltd.). The respondent argued that the resolution was actually from M/s H.S. Tuli and Sons Builders Pvt. Ltd., which had a typographical error. Upon verification of the original resolution book, the petitioner did not press this objection further.

2. Validity of the Resolution Authorizing the Execution Application:
The petitioner argued that the execution application was invalid as the resolution authorizing it was passed by directors without a Director Identification Number (DIN), as required by the Companies Act, 2013. The respondent conceded that the directors did not possess DINs but argued that this objection was not raised before the Executing Court. The court held that non-possession of DIN disqualified the directors from acting, rendering the resolution invalid.

3. Requirement of Director Identification Number (DIN) for Directors:
The court examined Sections 152, 164, and 167 of the Companies Act, 2013, and Rule 2(1)(d) of the Companies (Appointment and Qualification of Directors) Rules, 2014. It concluded that DIN is mandatory for all directors, and non-possession leads to disqualification and vacation of office. Consequently, the resolution passed by the board without DINs was invalid, and any proceedings based on such a resolution were null.

4. Calculation of the Decretal Amount and Interest:
The petitioner objected to the calculation of interest, arguing that the Executing Court incorrectly clubbed the principal amount with interest for future interest calculations. The respondent countered that the calculations were correct as per the order dated 04.10.2006, which had attained finality. The court did not need to address this objection in detail due to the acceptance of the primary objection regarding the non-maintainability of the execution proceedings.

Conclusion:
The court set aside the orders dated 13.10.2018 and 05.11.2018, holding that the execution application was non-maintainable due to the directors' non-possession of DINs. However, it allowed M/s H.S. Tuli & Sons Builders Pvt. Ltd. the liberty to recover the amount owed in accordance with the law.

---