Directors disqualification Notification set aside.

Pleased to share that the findings of the Hon'ble Gujarat High Court resonate the grounds taken and contentions raised by us in the several Writ Petitions filed representing several aggrieved Directors.

Summary of the findings of Gujarat High Court Judgement dt 18th December, 2018 :
1. Section 164(2) of the Act of 2013, which had come into force from 01.01.2014 would have prospective and not retrospective effect.

2. The defaults contemplated under section 164(2)(a) with regard to non-filing of financial statements and annual returns for any continuous period of three financial years would be the defaults to be counted from the financial year 2014-15 only and not 2013-14.

3. The respondents could not have treated the Directors as disqualified/ineligible for a period of five years from 01.11.2016 to 01.11.2021, while publishing the impugned list under Section 248 of the Act of 2013

4. Even if the Registrar removes the name of a company from the register of companies, and even if such company would stand dissolved under section 248, the statutory liabilities/obligations of such struck off company and its directors would still remain to be discharged, in view of section 250 of the said Act of 2013.

5. The respondents could not have deactivated the DINs allotted to the Directors under section 154 of the said Act, except under the circumstances mentioned in Rule 11 of the said Rules of 2014.

In view of the above, the impugned list dated 12.09.2017 of the Directors associated with the "struck off companies" under section 248 published by the Respondent No. 1 is quashed and set aside. The respondents are directed to activate the respective Director Identification Numbers of the petitioners forthwith, if not activated so far. However, it is clarified that the respondents shall be at liberty to take legal action against the petitioners for statutory default or non-compliance, in accordance with law

All petitions stand allowed accordingly.