Allahabad High Court
Manish Kumar Didwania vs Union Of India And Another on 13 November, 2019
Bench: Sudhir Agarwal, Rajeev Misra
HIGH COURT OF JUDICATURE AT ALLAHABAD Court No. - 34 Case :- WRIT - C No. - 2154 of 2019 Petitioner :- Manish Kumar Didwania Respondent :- Union Of India And Another Counsel for Petitioner :- Udai Chandani Counsel for Respondent :- A.S.G.I.,Gyan Prakash Hon'ble Sudhir Agarwal,J.
Hon'ble Rajeev Misra,J.
1. Heard Mr. Udai Chandani, learned counsel for petitioner and Mr. S.P. Singh, Senior Advocate-Additional Solicitor General of India, assisted by Mr. Sanjay Kumar Om and Mr. Sanjay Kumar Yadav, learned counsel for respondents.
2. This writ petition under Article 226 of Constitution has been filed seeking a writ in the nature of certiorari for quashing list of disqualified directors showing petitioner's name and status as 'disqualified Director' of Company, issued under section 164(2) of Companies Act, 2013 (hereinafter referred to as the Act, 2013) for the period 01.12.2017 to 30.11.2022, vide notification no. 01316353.
3. It is contended by learned counsel for petitioner that petitioner was Director of two Companies, namely, Rani Sundari Estates Ltd. and Blacksmith and Mason Exim Ltd. Aforesaid two companies were issued certificates of registration by Registrar of Companies, Kanpur on 10.04.1996 and 09.06.2006 respectively. Above mentioned companies were subsequently converted into "Limited Liability Partnership", under the provisions of Limited Liability Partnership Act, 2008 (hereinafter referred to as the LLP Act, 2008). This conversion was allowed by Registrar of Companies by issuing certificates of conversion to Rani Sundari Estates Ltd. LLP and Blacksmith and Mason Exim Ltd. LLP, vide conversion notifications dated 11.03.2015 and 17.03.2015, respectively. Both these notifications are on record at page nos - 77 and 99 of paper book respectively.
4. It is submitted that impugned order has been passed in the year 2017 under the provisions of Section 164(2) of Act, 2013. On the date of passing of impugned order aforesaid two companies of which petitioner was Director were not at all governed by Act of 2013, as they had already been converted into Limited Liability Partnership and hence are governed by the provisions of LLP Act, 2008.
5. It is thus contended that impugned order passed by Registrar of Companies disqualifying petitioner under section 164(2) of Act, 2013 is patently illegal and without jurisdiction.
6. Sri S.P. Singh, Senior Advocate-Additional Solicitor General of India assisted by Mr. Sanjaiy Kumar Om, when confronted with the aforesaid situation could not dispute the fact that both companies in which petitioner was Director, were already converted into Limited Liability Partnership with effect from 11.03.2015 and 17.03.2015 respectively. Consequently, they were not governed by Act, 2013, hence, section 164(2) of Companies Act, 2013 was also not applicable to petitioner.
7. Under the circumstances, writ petition is allowed. The impugned order of Registrar of Companies blacklisting petitioner under section 164(2) of Act, 2013 in the context of aforesaid two companies is hereby quashed.
8. There shall be no order as to cost.
Order Date :- 13.11.2019 Prajapati