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Telangana High Court

M/S.Sam Ecommerce India Private ... vs The Union Of India on 31 March, 2022

Author: G. Radha Rani

Bench: G. Radha Rani

            HON'BLE Dr. JUSTICE G. RADHA RANI

                                W.P.No.5872 of 2022
ORDER:

This Writ Petition is filed for the following relief:

"....to issue any appropriate writ, order or direction more particularly in the nature of Writ of Mandamus to declare the action of the respondents in deactivating the Director Identification Number (DIN) of the petitioners herein (DIN 07098725 and 05106395) without notice and strike off the Companies in which the petitioner is Director and further preventing the petitioners from filing the annual returns and financial statements of the companies in which they are Directors as arbitrary, illegal, without jurisdiction, contrary of the provisions of the Companies Act, 2013 (hereinafter referred to as 'Act') and Rule 11 of the Companies (Appointment of Directors) Rules, 2014, violative of the principles of natural justice besides violating the petitioners' rights guaranteed under Article 14 and Article 19(1)(g) of the Constitution of India, and consequently direct the respondents to restore the DIN of the petitioners and pass such order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case."

When the matter is taken up, it is submitted by the learned counsel for the petitioners that the issue raised in the present Writ Petition is squarely covered by the common order dated 18.07.2019 passed by this Court in W.P.No.5422 of 2018 and batch.

Learned Standing Counsel for the Registrar of Companies (For the State of Telangana) appearing for respondent No.2 does not dispute the aforesaid submission.

Operative portion of the aforesaid order reads as under:

"For the foregoing reasons, the impugned orders in the writ petitions to the extent of disqualifying the petitioners under Section 164(2)(a) of the Act and deactivation of their DINs, are set aside, and the 2nd respondent is directed to activate the DINs of the petitioners, enabling them to function as Directors other than in strike off companies.
It is made clear that this order will not preclude the 2nd respondent from taking appropriate action in accordance with law for violations as envisaged under Section 164(2) of the Act, Dr.GRR, J 2 W.P.No.5872 of 2022 giving the said provision prospective effect from 01.04.2014 and for necessary action against DIN in case of violations of Rule 11 of the Rules.
It is also made clear that if the petitioners are aggrieved by the action of the respondents in striking off their companies under Section 248 of the Act, they are at liberty to avail alternative remedy under Section 252 of the Act.
All the writ petitions are accordingly allowed to the extent indicated above."

In those circumstances, following the above said common order and for the reasons recorded therein, this Writ Petition is also allowed in terms thereof.

Miscellaneous Petitions, if any pending, shall stand disposed of. There shall be no order as to costs.

____________________ Dr. G. RADHA RANI,J Date: 31.03.2022 rkk