Congratulations…!! Now you have a way to remove your Disqualifications which is occurred due to new provisions of the Companies Act, 2013.

History

Ministry of Corporate Affairs (MCA) put Disqualifications on more than 3.2 lakh Director due to non-filing of statutory e-forms like AOC-4 and MGT-7 of the Companies where they are Directors. The matter worsened as the impacted directors were forced to vacate office in other companies too, leaving theirs and the company’s future in jeopardy. A natural reaction of the companies that were struck off and the directors who were disqualified, was to look for a viable solution at the earliest.

Those companies which were alert took the route of Condonation of Delay Scheme (CODS), the window that was opened for a specific period by MCA especially for struck off companies. Many directors got instant relief as their DIN was temporarily activated to help with overdue compliances. The companies that came out clean, their director’s disqualification was removed. Others, appealed to the NCLT within one year, under the provisions of the Companies Act, 2013. Still, there are many directors who are facing the exile of five years.

Way (Writ Petition)

Various High Courts (HC) have given positive interim judgments in writ petitions filed by the aggrieved directors of struck off companies. In December, 2018, the Gujarat High Court invalidated the MCA’s disqualification list that was published in September, 2017. Those directors who had approached the High Court, got their disqualification removed from the respective ROC. In same way, the High Courts of Hyderabad, Jaipur, Delhi, and Karnataka provided interim relief to the directors after hearing the bunch of writ petitions filed by them. Image result for delhi high court

Why the High Court Accepted Writ Petition

The decision of MCA has been challenged in the Courts on these grounds

  • Many companies never received any Notice and this is against the principle of natural justice.

  • The Companies Act 2013 came into effect from April 1, 2014, hence, the financial year for the mandated compliance documents shall be from 2014-15 and not 2013-14. Companies Act, 2013, is a perspective in nature, therefore none of its Sections should be used retrospectively.

  • Before the implementation of 2013 Act, the Companies were governed by Companies Act, 1956, and there was no such provision of directors’ disqualification for non-compliance.

This is the right time to contact and avail legal consultation at the earliest and go for the legal recourse that will help you in rescuing your professional life.