TaxTMI 
TaxTMI 
2021 (1) TMI 1228
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....ns with the Registrar of Companies (hereinafter, "ROC"). The said company was also struck off from the Register of Companies. The disqualification occurred on 1st November, 2016. The prayer of the Petitioners is that their Director Identification Number (hereinafter, "DIN") and Digital Signature Certificate (hereinafter, "DSC") be reactivated to permit them to avail of the Companies Fresh Start Scheme, 2020 (hereinafter, "CFSS-2020"). 3. The legal aspects arising out of disqualification of directors under Section 164 and 167 of the Companies Act, 2013 and the deactivation of their DIN and DSC numbers have been dealt with in the following judgements: i. Mukut Pathak & Ors. v. Union of India & Ors., 265 (2019) DLT 506, ii. Sandeep Agarwa....
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....e there is no stay on the judgment in Mukut Pathak (supra), it continues to hold the field. Thus, in cases where directors have been disqualified prior to 7th May, 2018, the proviso to Section 167(1)(a) would not apply and the directors would continue to be directors in companies other than the defaulting company. The disqualification of such directors qua active companies would therefore be liable to be set aside and their DIN and DSC's reactivated. b) Directors who have been disqualified post 7th May 2018, qua other `active' companies: As held in Mukut Pathak (supra), in all cases where the directors have been disqualified on or after 7th May, 2018, the proviso to Section 167 (1) (a) would apply and such directors would cease to be d....
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....s, 2014 and no additional fee shall be payable; (v) To the extent that any prosecution has been launched or penalty has been imposed for the delay associated with the filings of belated documents, it provides that the same shall not be launched and immunity has been provided; (vi) Applications can be made for seeking immunity in respect of belated documents. Once the documents are taken on file or approved by the designated authority, such applications would have to be filed within six months from the date of closure of the Scheme; (vii) To avail benefit of the Scheme, the defaulting company would have to withdraw any appeal that it may have filed against prosecution launched or orders passed by a court or adjudicating authority un....
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.... question of delay or limitation would not arise. The ld. Division Bench did not have an occasion in the case of Anamika Devi (supra) and Gaurav Kumar (supra) to consider this Scheme." Applying the scheme to the facts of the case, this Court in Sandeep Agarwal (supra) directed reactivation of the DINs and DSCs of directors of two companies - one whose name had been struck off and one, which was still active. Thus, the DINs and DSCs of disqualified directors of struck off companies, who are also directors in active companies, may be reactivated qua the active companies, in line with the spirit of the CFSS-2020. c) Directors of 'active' companies who have been disqualified: In cases where directors of 'active' companies have been disq....
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....uation of the disqualification would defeat the Scheme and its purpose. 5. In furtherance of the purpose of this scheme, directors of struck off companies who seek to be appointed as directors of other/new companies, ought to be provided an opportunity to avail of this scheme, provided that they have undergone a substantial period of their disqualification. The scheme clearly seeks to provide a fresh start for directors of defaulting companies who seek appointment in other companies or wish to start new businesses. Therefore, if a substantial period has passed since the disqualification of such directors, they ought to be given an opportunity to avail of the scheme. 6. The CFSS-2020 was last extended till 31st December 2020. If the scheme....