Lawstreet Journal

MCA Directed to Set Aside Disqualification of Directors in Light of Companies Start Fresh Scheme, 2020 [READ ORDER]

Lawstreet Journal 7 Sep 2020 10:07pm

Image courtesy: Lawstreet Journal Judiciary MCA Directed to Set Aside Disqualification of Directors in Light of Companies Start Fresh Scheme, 2020 [READ ORDER]

A petition was filed in Delhi High Court by the petitioners Mr. Sandeep Agarwal and Ms. Kokila Agarwal, both of whom are directors in two companies namely Koksun Papers Private and Kushal Power Projects Private Limited. 

The petition was filed to challenge the disqualification of directors due to the non-filing of financial statements and annual returns. On 30th June 2017, Kushal Power was struck off from the Register of the Companies. The Petitioners, being directors of Kushal Power were also disqualified with effect from 1st November 2016 for a period of five years till 31st October 2021 “under Section 164(2)(a) of the Companies Act, 2013.” Their Director Identification Numbers (“DIN”) and Digital Signature Certificates (“DSC”) have also been canceled because of which they are unable to carry on the business and file returns etc. in the active company Koksun Papers. 

Mr. Nikhil Verma, ld. counsel appearing for the Petitioners relied upon “Sections 164(2) and 167(1)(a) of the Act” to submit that the said sections were materially amended by the Companies Amendment Act, 2018, and introduction of the disqualification in proviso “under Section 167(1)(a),” comes into effect only on 7th May 2018. Thus, a conjoint reading of “Section 164(2) and 167(1)(a)” would show that the disqualification would not apply in a retrospective manner. He took the support of the judgment of the Court in Mukut Pathak & Ors. v. Union of India & Ors.

Further, he submitted that Koksun Papers is entitled to take benefit of the Companies Fresh Start Scheme (CFSS) 2020 dated… Continue Reading...

Tagged: Ministry of Corporate Affairs  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0

C2RMTo Know More

Something Awesome Is In The Work









Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail