NAGOOR RAWTHER JEHANGIR Vs. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF CORPORATE AFFAIRS

JUDGEMENT

(1.) The captioned writ petitions are materially connected, in respect of action initiated by the Registrar of Companies against the Directors of the Companies as provided under section 164(2) r/w section 167 of the Companies Act, 2013 and therefore, I heard them together and propose to pass a common judgment.

(2.) Narration of individual facts are not at all necessary, since the issues basically are founded on the aforesaid provisions of law read along with rule 14 of the Companies' (Appointment and Qualification of Directors) Rules, 2014 and so also on account of the subsequent development, on introduction of a settlement scheme by the Ministry of Corporate Affairs, Government of India. The relevant aspects for the disposal of the writ petitions are as follows;

(3.) The companies registered under the Companies Act, 2013 and the Predecessor Act, 1956 inter alia requires to file annual financial statements and annual returns with the Registrar of Companies, and non - filing of such returns is an offence under the Act, liable to be prosecuted. As per section 164(2) read with section 167 of Act, 2013 brought into force with effect from 1.4.2014, the Directors of a company will stand disqualified, on account of default of the company in filing annual return; or a financial statement for a continuous period of 3 years. Consequent upon commencement of sections 164(2) and 167 of Act, 2013, Ministry of Corporate Affairs, launched a settlement scheme 2014 providing an opportunity to the defaulting companies to clear their defaults within the time period specified therein. However, during September, 2017, the Ministry identified that, large number of Directors associated with Companies that failed to file statements and returns for a continuous period of three years, were barred from accessing the online registry, and a list of such Directors was published on the website of the Ministry. It is thus challenging the adverse actions and consequential proceedings the writ petitions are filed.