Division Bench allows appeals, reinstates directors' DINs under Companies Act 2013.

The Division Bench in W.A.No.569 of 2020 allowed the appeals, quashing the order disqualifying directors under Section 164(2)(a) of the Companies Act, 2013. The ruling directed the reactivation of Director Identification Numbers (DIN) for the directors within 30 days, emphasizing that the RoC lacked the authority to deactivate DIN upon disqualification. The judgment aligned with the Act's principles, allowing for potential disqualification actions post-inquiry. As a result, the present writ petitions were granted based on this precedent, with connected miscellaneous petitions closed without costs.

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Issues:
Challenge to order disqualifying directors under Section 164(2)(a) of the Companies Act, 2013 and seeking reappointment without hindrance.

Analysis:
The writ petitions challenged the order disqualifying directors under Section 164(2)(a) of the Companies Act, 2013. The RoC had been disqualifying directors through various notifications, leading to legal challenges. A significant judgment in Bhagavan Das case set aside earlier notifications/orders disqualifying directors. However, a subsequent notification dated 17.12.2018 faced challenges but was dismissed by the Court. A batch of writ appeals, including W.A.No.569 of 2020, further addressed the powers of the RoC under Sections 164 and 167(1) of the Companies Act, 2013 and related rules. The Division Bench analyzed the Rules regarding Director Identification Number (DIN) and concluded that the RoC lacked the authority to deactivate DIN upon disqualification under Section 164(2) of the Act.

The Division Bench's ruling in W.A.No.569 of 2020 allowed the appeals, quashing the impugned order and directing reactivation of DIN for the directors within 30 days. The judgment emphasized that while DIN reactivation was ordered, the RoC could still initiate action for disqualification after an inquiry to attribute specific defaults to directors. The decision aligned with the principles outlined in the Companies Act, 2013 and related rules. Following this precedent, the present writ petitions were allowed based on the earlier judgment, and the connected miscellaneous petitions were closed without costs.

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