NISHANT
Clause (a) of sub-section (2) of section 164 of Companies Act 2013 is not ultra vires article 14 of the Constitution
NISHANT MEHROTRA 19 Nov 2019

Clause (a) of sub-section (2) of section 164 of Companies Act 2013 is not ultra vires article 14 of the Constitution


Karnataka High Court :: Disqualification for appointment of - Clause (a) of sub-section (2) mandating that person who having been a director has not filed financial statements or annual returns for any continuous period of three financial years is not to be eligible to be reappointed as director in any company for five years - Constitutional validity of that clause - Section 164 (2) (a) read with article 19(1) (g) of Constitution - Clause (a) of sub-section (2) of section 164 is not ultra vires article 14 of the Constitution as the provision is not manifestly arbitrary and also does not fall within the scope of the doctrine of proportionality. The provision does not violate article 19(1) (g) of the Constitution as it is made in the interest of general public and places a reasonable restriction on the exercise of the fundamental right contained in the article. Consequently, where the disqualification under clause (a) of sub-Section (2) of section 164 is based on a continuous period of three financial years commencing from 1st April, 2001 the directors stand disqualified.


Vacation of office on director incurring any disqualification specified in section164 - Proviso to clause (a) of sub-section (1) of section 167 inserted by Companies (Amendment) Act, 2017 effective from 7th May,2018-Can it have retrospective operation -Section 167 (1) (a) - Held, No.

Case:

Yashodhara Shroff V. Union of India

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