Delhi High Court issues notice to MCA on the grievance to petitioner/directors who doesn’t want to continue with a stuck off company

Two directors aggrieved by the disqualification list published  by Ministry  of Corporate Affair approached the Delhi High court with another realted issue that what would  happen to director  who don’t  want to continue  with their  directorship  in the disqualified companies ( as a effect  of which) their DIN got  cancelled.

It is relevant to mention that  earlier a series of petitions have been brought before  the Hon’ble  High Courts raking up the  issue of arbitrary and illegal disqualification of  the director  vide the impugned list published by the Ministry of Corporate affairs disqualifying the director and cancelling their DIN Number with Immediate effect in consonance with the Section 164 of the Companies Act, 2013.,

The Hon’ble High court of Hyderabad, Madras and Delhi have already admitted such petitions wherein legality of impugned list is under challgene and have directed Union of India  to file response to such petitions.

In the meanwhile the  MCA on 29.12.2017 came up with a scheme namely Condonation of Delay Scheme ,2018 whereby relief was granted to many disqualified directors by allowing them to file the requisite documents and accounts with ROC before 31.03.2018 in terms of which several petition were dismissed as withdrawn.

However,  in the present Writ petition of the directors before the Hon’ble  High court of Delhi the Grievances of the petitioners was slightly different i.e :

1. The petitioner argued that they were  not covered by the COD scheme launched by the Ministry as the said scheme exclude companies which have been stuck off/  and the company (Shamoga Valley Resorts Private Limited ) for whose default the petitioners were disqualified was also stuck off company therefore  could not be covered  under the scheme.

The relevant protion of the Scheme reads, inter alia,  as under:

“3. Applicability: – This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/ whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.”

Further petitioner argued that there were disputes between the petitioners and other director  of Shamoga Valley Resorts Private Limited and therefore they don’t wish to continue with the said company as directors and they are clueless as ministry  have not issued any direction  in this regard.

Mr. shukla Counsel for the respondent (Union of India), who appeared on advance notice submitted  that he would have to take instructions in the matter since the petitioners do not wish to continue their engagement with SVRL

The Hon’ble High Court of Delhi was pleased to Issue notice and direct  Mr. Shukla to file a counter affidavit on behalf of the respondents while staying the operation of the impugned list  insofar as it includes the name of the petitioners till 31.3.2018 expecting by that time  Division Bench may  decide the fate of the  impugned list in the similar petition pending before  it.

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