Allowed

Shri Magapati Muralidhar v. Union of India

Telangana HC8 Feb 2021WP/2628/2021

Case brief

AI extract

What is this about?

This petition challenged the disqualification of the petitioner's DIN due to alleged defaults in filing financial statements. Citing a common order in W.P. No. 5422 of 2018, the High Court allowed the writ petition and directed the restoration of the petitioner's DIN without costs.

What did the court decide?

The writ petition was allowed; the Registrar of Companies was directed to activate the petitioner's DIN; no order as to costs.

Shri Magapati Muralidhar Vs Union of India — Service and Employment | Telangana HC (2021)

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HIGH COURT FOR THE STATE OF TELANGANA^{AT HYDERABAD} (Special Original Jurisdiction)

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IVONDAY, THE EIGHTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY ONE

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PRESENT

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THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI

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WRIT PETITION NO: 2628 OF 2021

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Betwee n:

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Shri Magapati l\iluralidhar, (DlN: 02348769) S/o. Shri lt/ . Venkata Rao, Aged about 50 years, Resident of 7-1-4816, Flat No.403, Creative l,4ansion, Sham Karan Road, Ameerpet, Hyderabad, Telangana, 500016,

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..,PETITIONER

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ANO

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Union of lndia, Represented by the Secretary, N,4inistry of Corporate Affairs, A Wing, Shastri Bhavan, Rajendraprasad Roa!, New Delhi - 110 001

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The Registrar of Companies of Telangana, 2no Floor, Corporate Bhavan, GSI Post, Tattiannaram, Nagole, Bandlaguda, Hyderabad - 500 068, Telangana.

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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 issue appropriate writ, order or direction, more particularly a Writ of Mandamus, declaring:

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a that the list of directors notified by the Ministry of Corporate Affairs (MCA) on its website, i.e. www.mca.gov.in, as arbitrary, illegal, without^{jurisdiction,} contrary of the provisions of the Companies Act, 2013 and Rule 1^'l of the Companies^(Appointment of Directors) Rules, 2014, violative of the^principles of natural^justice besides violating the Petitioner's rights^guaranteed under Article^{14 and} Article 19 (1) (g) of the Constitution of lndia and^quash / set-aside the same to the extent it declares / treats the Petitioner as disqualified in terms of Section 164^{(2) (a)} of the Companies Act 2013. in the interest of lustice,

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b that the Petrtioner is not disqualified in terms of Section 164 (2) (a) of the Companies Act, 2013, for the reason of alleged default of non-filing financial statements/Annual Returns by the Companies

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C a writ of mandamus or any other appropriate writ, order or direction commanding the Respondents to restore the DlN. 02348769 of the Petitioner

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d award cost of this petition to the Petitioner.

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il2ll

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lA NO: 1 OF 2021

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Petition under section^{151 CPC prayingthat in the circumstancesstated in} the affidavit filed in^{support of the petition,the High court may be pleasedto} suspend the notification^{of the Respondents disqualifyingthe Petitioner as director,} consequently direct the^{Responden!2 to activatethe DIN: 02348769 of the} Petitioner,^{pending disposalof the mainWrit Petition'}

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Counsel for the^{Petitioner:SRl. A. NAGARAJKUMAR}

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Counsel for the Respondents:^{SRI NAMAVARAPU RAJESHWARRAO,} ASSISTANT SOLICITOR^GENERAL

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The Court made the^{following: ORDER}

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THE HON'BLE^{SRI JUSTICE ABHINANDKUMAR SHAVILI}

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WRIT PETITION^{No'2628of 2O2l}

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ORDER:

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This writ petition^{is being disposedof at the admission} stage with the^{consentof learned counselfor the respective} parties.

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This writ petition^{is filed seekingthe following relief:}

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".... to isstle appropriate^{writ order or clirection,more} particr-rlarly, a^{Writ ol Mandamus declaring;(a) that} the list ol^{Directors notifiecl by the Ministry of} Corporate Affairs^{(MCA)on itsu'ebsite i e'} www,mca.gor,.in as^{arbitrary, illegal, without} jurisdiction, contrary of the^{provisions ofthe} Companies Act,^{2O 13 and Rule1 I of theCompanies} Appointment of^{Directors Rules,2014, violative of the} principles of natural^{justice, besidesviolatingthe} Petitioners rights^{guaranteedunder Article 14 and} Article 19^{(U(g) of the Constitutionof India and quash} /^{set aside the same to the extentit declares/treats} the Petitioner as^{disqualifiedin termsof Section164} (2)(a) of the Companies^{Act,2O 13 in the interestof} justice; (b) that the Petitioner^{is not disqualihed in} terms of Section^{164(2)(a)of the Companies Act' 2Oi3} for the reason^{of allegecldefault of non-filingFinancial} St atemen ts/ Annttal^{Returnsby the Companies;(c)a} r.l,rit of mandamlls^{or allv other appropriate writ clrder} or direction commanding^{the Respondentsto restore} the DIN: O234A7 69^{of the Petitioner; (d) award costof} this petition to the^{Petitioner and pass such other} order or orders ......"

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AKS.I w P.No.2628 of202t

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The petitioner challenges his disqualification from Directorship under Secti on 164(2) of the Companies Act, 2013, for the alleged default in filing Financial Statement/Annual Returns, and consequenfly seek restoration of his Director Identification Number (DIN) No.02348769.

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Learned counsel for the petitioner submits that the issue raised in the present Writ petition is squarely covered b-y the common order dated lg.OT.2O19 1n W.P.No.5422 of 2018 and batch.

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Learned Standing Counsel for the 2na 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 wdt petitions to the extent of disqualifying the petitioners under Section rcael@l of the Act and deactivation of their DINs, are set aside, and the 2n,r respondent is directed to activate the DlNs of the petitioners, enabling them to function as Directors other than in strikc off companies.

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It is made clear that this order will not preclude the 2"d respondent from taking appropriate action in accordance with law for violations as envisaged under Section 164(2) of the Act, giving the said provision prospective effect from O1.O4.2014 and for necessary action against DIN in case of violations ofRule l l ofthe Rules.

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W P No lo:3 oIl(rll

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liberty to avail alternative remedy under Section 252 of the Act.

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All the writ petitions are accordingly allowed to the extent indicated above."

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In view of the said order dated lB.O7,2O),9 and for the reasons recorded therein, this Writ Petition is also allowed in

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terms thereof. No order as to costs-

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Pending miscellaneous petitions, if any, shall stand

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ciosed.

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SD/. K.SAILESHI ASSISTANT REGISTRAR

,TRUE COPY//

SECTION OFFICER

To,

The Secretary, tVinistry of Corporate^{Affairs, Unionof lndia, A Wing, Shastri} Bhavan. Rajendraprasad^{Road. New Delhi - 1^10O0'1} 2. The Registrbr of Companies^{of Telangana, 2no Floor'Co-rp-olq-teBhavan, GSI} Post, Tittiannaram, Nagole, Bandlaguda,^{Hyderabad - 500 068, Telangana.} 3. One CC to Sri A. Nagaraj^{Kumar, Advocate} [OPUC] 4. One CC to Sri Nama-varapu Raieshwar^{Rao, Assistint Solicitor General} [OPUC] 5. Two CD Copies CHR \ i--

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HIGH COURT

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DATED:0810212021

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1 'dt 5 TAIA
c
oo .t $ rEB 2021

C!.SP

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ORDER

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W.P.No.2628 of²⁰²¹

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ALLOWING^{THE WRIT PETITION} WITHOUT^COSTS