Allowed

Rakesh Kumar Agarwal and Another v. The Ministry of Corporate Affairs and Another

Telangana HC2 Dec 2020WP/21653/2020

Case brief

AI extract

What is this about?

High Court allowed the Writ Petition for restoration of Director Identification Numbers (DIN) for petitioners disqualified under Section 164(2)(a) of Companies Act 2013. Court relied on common order dated 18.07.2019 in W.P. No. 5422 of 2018 to set aside disqualification orders and direct activation of DINs.

What did the court decide?

Impugned orders disqualifying petitioners set aside; Registrar directed to activate DINs enabling petitioners to function as directors (except in strike-off companies).

Rakesh Kumar Agarwal and Another Vs The Ministry of… — Company and Corporate | Telangana HC (2020)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAO

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(Speciat Original Jurisdiction)

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WEDNESDAY,THE SECOND DAY OF DECEIVBER TWO THOUSAND AND TWENTY

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PRESENT

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THE HONOURABLE SRI JUSTICE CHALLA KODANDA RAM

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WRIT PETITION NO: 21653 oF 2020

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Between:

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Rakesh Kumar Aganval, S/o. Late Premchand Agarwal, Aged. 47 years, Occupation. Business, R/o. H.No.6-3-885, Thakur Mansion Lane, Somajiguda, Hyderabad-500082, Telangana.

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Mukesh Kumar Aganival, S/o. Late Premchand Agarwal, Aged. 45 years, Occupation. Business, R/o. H.No.6-3-885, Thakur Mansion Lane, Somajiguda, Hyderabad-500082, Telangana.

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...PETtTtONER(S)

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AND

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The Ministry of Corporate Affairs, A Wing, ShastriBhawan, Rajendra Prasad Road, New Delhi - 110 001 , Represented by its Secretary.

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The Registrar of Companies, Ministry of Corporate Affairs, For the Telangana State,2nd Floor, Corporate Bhawan, GSI Post, Tattiannaram, Hayath Nagar Mandal, Hyderabad - 500 068.

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...RESPONDENTS

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Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be^pleased to pass an order or direction or any other proceedings one in the nature of Writ of IMandamus declaring the inaction of respondents in deactivating the DIN of the petitioners and placing him under disqualified director at Sl.No.94B and 949 by activating the Director ldentification Number (DlN). 00049820 Rakesty Kumar Agarwal (petitioner No.1 ) and the Din No. 00049950 Of Mukesh Kumar Agarwal (Petitioner No.2) of the disqualified directors order dated 1410912017 and further restricting the petitioners from filing statutory returns, i.e., the annual returns and financial statements of the Company and also to discharge his day to day affairs as Directors as arbitrary, illegal, without^{jurisdiction,} contrary of the provisions of the Companies Act,2013 and Rule 1^'1 of the Companies (Appointment of Directors) Rules, 2014, violative of the principles of natural^justice besides violating the petitioners rights guaranteed under Article 14 and Article 19 (1) (g) of the Constitution of lndia and also direct the respondent to permit the Petitioners to continue them as Directors of the Companies and/or get appoint or reappointed as Directors of any Company without any interference

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lA NO: 1 OF 2020

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondents to stay of the operation of the impugned order dated 1410912017 published by the respondents which was uploaded in the MCA website of the Respondent No.1, with S.No. 948 and 949, by activating the Director ldentification Number (DlN). 00049820 Rakesh Kumar Agarwal (petitioner No.'1) and the Din No. 00049950 Of Mukesh Kumar Agaruual (Petitioner No.2) and allow the petitioners to comply with the directions dated 1411012020 of Honourable NCLT, Hyderabad discharge of his duties and functions as a Director and activate the DIN Nos and to remove the d isqua lification Under Section 164 (2)(A) of the Companies Act, 2013, pending disposal of main writ petition Counsel for the Petitioner: SRl. K S SUNEEL

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Counsel forthe Respondents: SRI NAMAVARAPU RAJESHWAR^RAO(ASSGI)

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The Court at the stage of admission made the following: ORDER

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THE HON'BLE SRI JUSTICE CHALLA^{KODANDA RAM}

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WRIT PETITION No. 21653 of2O2O

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ORDERT

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The petitioners challenge their disqualification^from Directorship under Section rcaQ) of the Companies Act, 2013,^for the alleged default in filing financial statement/Annuai Returns, and consequentiy, seek restoration of the Director Identification Number (DIN) viz. 00049820 and O0049950 respectively.

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Learned counsel for the petitioners submits that the issue raised in the present Writ Petition is squarely covered by the common order dated 18.07.2019 in W.P.No.5422 of 2078 and batch.

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Learned Standing Counsel for the 2"d respondent - Registrar of Companies does not dispute the aforesaid submission.

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Operative portion of the aforesaid order reads as under:

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"For^{the foregoing reasons, the impugned orders in} the writ petitlons to the extent of disqualifying the petitioners under Section 16a(2)(a) of the Act and deactivation of their DINS, are set aside, and the 2"d respondent is directed to actlvate the DINs of the petitioners, enabllng them to function as Directors other than in strike off companies.

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It is made clear that thls order will not preclude the 2"d respondent from taking appropriate action in accordance with law for violatlons as envisaged under Section 16412l of the Act, giving the said provision prospective effect from OL.O4.2O|4 and for necessary actioa against DIN in case of violations of Rule 11 of the Rules.

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It is also made clear that if the petitioners ale aggrieved by the action of the respondents in striking off their companies under Section 248 of thb Act, they are at liberty to avail alternative remedy under Section 252 of the Act.

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All the writ petitions are accordiagly allowed to the extert indicated above-"

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In view of the said Order dated 1g.OZ.2Olg and for the

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reasons recorded therein, this writ petition is also allowed in terms

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thereof. No costs.

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Miscellaneous petitions, if any stand closed.

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SD/.K.SAILESHI ASSISTANT REGISTRAR

//TRUE COPY//

SECTION OFFICER

To,

The Secretary, Ivlinistry of Corporate Affairs and Another, A Wing, Shastri Bhawan, Rajendra Prasad Road, New Delhi - 1'10 001.

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The Registrar of Companies, Ministry of Corporate Affairs, For the Telangana State, 2nd Floor, Corporate Bhawan, GSI Post, Tattiannaram, Hayath Nagar Mandal, Hyderabad - 500 068.

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