Hello readers, through this post you will get information about recent order of “Delhi High Court in Matter of Disqualification of Directors”. Lets start….
On October 10, 2017, Delhi High Court has sought reply from Centre on a plea against its two notifications, disqualifying directors of private limited companies for non-filing of financial statements for three continuous financial years. The petition sought the relief on the ground that the said disqualification of the directors under Section 164 (2)(a) of the Companies Act, 2013, without granting them the opportunity to be heard, was unreasonable, unjust, arbitrary, illegal and unconstitutional.
The counsel contended that Section 274 of the Companies Act 1956 was limited to dealing with disqualification of directors of public limited companies and it was only after the Companies Act, 2013 came into effect that the directors of private limited companies were brought within the ambit of disqualification for the first time. Therefore, the new provision ought to have a prospective effect and not a retrospective one.
It directed the Ministry of Corporate Affairs to file its counter affidavit before the next date of hearing and till next date of hearing, there shall be stay of the notices dated September 6 and September 12, 2017 to the extent that they relate to petitioners.
The matter will further list on January 29, 2018 | HIGH COURT ORDER