Director Disqualification Relief by Madras High Court
Are you one the director whose DIN was disqualified by MCA, as part of Director Disqualification exercise ? Are you looking for Director Disqualification Relief ?
Are you looking for relief form Director disqualification?
Are you not able to form a new company registration or get appointed as director in any other Company ?
Madras High Court has ruled in Directors favour and has given relief to disqualified directors the question of law that was to answered was , whether Director Disqualification be retrospective and cover previous periods?
The Honerable Madras High Court has ruled that DISQUALIFICATION CANNOT BE RETROSPECTIVE
The court said that since Section 164 came into effect from April 1, 2014, the respondents (i.e. RoC) cannot disqualify the petitioners for the financial years 2013-14, 2014-15, 2015-16, as it would tantamount to giving retrospective effect.
Section 164 states that if the financial statements are not filed for three continuous financial years, then the director can be disqualified.
However, if Section 2(41), which defines ‘financial year’ is taken into account, then the first financial year would end on 31.3.2015, the second financial year on 31.3.2016 and the third on 31.3.2017.
Based on the above the respondents (i.e. RoC) cannot disqualify the petitioners for the financial years 2013-14, 2014-15, 2015-16, as it would tantamount to giving retrospective effect.
Due to disqualification , the directors are debarred to act as directors in other companies.
Some companies are not able to file their accounts and other returns due to deactivation of DIN of such directors.
Such companies and directors can approach the concerned High Courts to get relief for them as per the decision of Madras High Court.
Please ensure the following so that you DIN does not get disqualified again
- File you DIR 3 KYC (Directors KYC) update , to know more click on this link DIR 3 KYC (Directors KYC)
- File your Company Annual Return on time
- Under what director disqualification means clink in this link to know more Disqualification
For any assistance on restoration of DIN or Filign of DIR 3 KYC , Contact Virtual Auditor Support team at 9962260333/ [email protected]