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Madras High CourtWP/2889/2022allowed

Lingannagari Bharath Kumar Reddy v. Union Of India

2022-02-18Honourable Dr Justice Anita Sumanth3 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 18.02.2022

CORAM:

THE HONOURABLE DR.JUSTICE ANITA SUMANTH W.P.No.2889 of 2022 & WMP.Nos.3013 & 3014 of 2022 Lingannagari Bharath Kumar Reddy ... Petitioner Vs

1. Union of India Rep. By its Ministry of Corporate Affairs, Shastri Bhawan, Dr.Rajendra Prasad Road, New Delhi-110001.

2. Registrar of Companies, Tamilnadu, Chennai, Block No.6, B-Wing, 2nd Floor, Shasthri Bhavan, 26 Haddows Road, Chennai - 600 006.

... Respondents PRAYER:- Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorarified Mandamus calling for the records of the 2nd respondent relating to the impugned order dated 01.11.2017, r/w the updated list dated 17.12.2018 which was uploaded and hosted on the website of the 1st respondent in DIN.No.06667855 on 18.12.2018 and quash the same as illegal, arbitrary and devoid of merit and consequentially direct the respondents herein to permit petitioner to get reappointed as Director of any Company or appointed as Director in any company without any hindrance. For Petitioner : Mr.Arjun Suresh For Respondents : Mr.K.B.Arul, Additional Central Government Standing Counsel

O R D E R

Mr.K.B.Arul, learned Additional Central Government Standing Counsel accepts notice for the respondents and is armed with

instructions to proceed with the matter finally. Hence, by consent of both counsel, this Writ Petition is disposed finally even at the stage of admission.

2. The petitioner is a Director in a company under the name and style of First ride Auto Private Limited. He challenges the records of the second respondent, i.e., the Registrar of Companies, Tamil Nadu, Chennai dated 01.11.2017 read with updated list dated 17.12.2018 uploaded on the website of the 1st respondent, i.e., Union of India, rep. by its Ministry of Corporate Affairs and quash of the same.

3. The necessity for the challenge at this point of time despite the list having been reflected in the website of R1as early as in 2017 is for the reason that the petitioner seeks reemployment as a Director in another company and the aforesaid disqualification poses a hindrance to the same.

4. Learned Counsel for the respondents would admit that such disqualification was without any notice having been issued to the petitioner. In this connection, both the learned counsel drawn my attention to the decision of Division Bench of this Court in the case of Meethelaveetil Kaitheri Muralidharan Vs Union of India in W.A.No.569 of 2020 reported in [2020 (7) Mad LJ 641] wherein while considering identical cases of disqualification of directors without notice, this Court has been pleased to set aside the publication of such list by the Registrar of Companies and the consequent deactivation of Director Identification Number (DIN).

5. The operative portion of the decision reads as follows: "...

43. In the result, these appeals are allowed by setting aside the impugned order dated 27.01.2020. Consequently, the publication of the list of disqualified directors by the ROC and the deactivation of the DIN of the Appellants is hereby quashed. As a corollary to our conclusion on the deactivation of DIN, the DIN of the respective directors shall be reactivated within 30 days of the date of receipt of a copy of this order. Nonetheless, we make it clear that it is open to the ROC concerned to initiate action with regard to disqualification subject to an enquiry to decide the question of attribution of default

to specific directors by taking into account the observations and conclusions herein."

6. In light of the identity of facts between the present Writ Petition and in the matters dealt with by the First Bench in the aforesaid batch, the same order is taken to be passed in the present Writ Petition as well. The disqualification of the Director stands quashed and consequently, his DIN shall be reactivated within a period of 30 days from today. 7.This Writ Petition allowed. No costs. Consequently, connected miscellaneous petitions are closed. SD/- ASSISTANT REGISTRAR // TRUE COPY // SUB ASSISTANT REGISTRAR sl/kbs To

1. The Ministry of Corporate Affairs, Union of India Shastri Bhawan, Dr.Rajendra Prasad Road, New Delhi-110001.

2. The Registrar of Companies, Tamilnadu, Chennai, Block No.6, B-Wing, 2nd Floor, Shasthri Bhavan, 26 Haddows Road, Chennai - 600 006.

+1cc to Mr.Arjun Suresh, Advocate Sr.10608 W.P.No.2889 of 2022 & WMP.Nos.3013 & 3014 of 2022 mg[co] srg 07/03/2022