2022 (12) TMI 620

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....f the Petitioners, which were deactivated upon disqualification of the Petitioners under Section 164(2)(a) read with Section 167 of the Companies Act, 2013. The said disqualification was effected for 2015-16 to 2017-18 due to non-filing of balance sheet and other returns with the Registrar of Companies. 3. Petitioner No.1 is a director in the following companies: ● SHRI MAHANAND LEISURE VALLEY PRIVATE LIMITED ● BHAVYEH HOTELS & RESORTS PRIVATE LIMITED ● SKY GANGA CONSTRUCTION PRIVATE LIMITED ● SABHYA INFRABUILD PRIVATE LIMITED ● VINCENT BUILDCON PRIVATELIMITED 4. Petitioner No.2 is a director in the following companies: * SHRIMAHANAND LEISURE VALLEY PR....

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.... approaching Courts seeking setting aside of disqualification and activation of DIN/DSC numbers. (a) Directors who have been disqualified prior to 7th May 2018, qua other companies in addition to the defaulting company: As per the proviso to Section 167(1) (a) of the Companies Act, 2013, once a director is disqualified qua one company i.e., the defaulting company, the office of the said director would become vacant in all companies. The said proviso, has, however, come into effect only on 7th May, 2018. In Mukut Pathak (supra) it was held that this proviso cannot have retrospective effect and would only apply if the disqualification took place after 7th May 2018. Paragraph 98 of Mukut Pathak (supra) reads as under: ....

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....0 introduced CFSS-2020 to allow a fresh start for defaulting companies and directors of such companies. This Court, in Sandeep Agarwal (supra) has analyzed CFSS-2020 to conclude that the purpose of the scheme is to provide an opportunity for 'active' companies i.e., companies whose names have not been struck off, who may have defaulted in filing of documents, to put their affairs in order. 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 compani....

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....entities that are not conducting businesses are not misused as 'shell companies' for any improper activities. A substantial part of the disqualification period has already been completed. The introduction of the CFSS is itself a step for 'providing a fresh start'. Under such circumstances, continuation 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 default....