SRI. JALAJ KOTHARI vs UNION OF INDIA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 16 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 17419 OF 2026 (GM-RES)
C/W
WRIT PETITION NO. 10482 OF 2026 (GM-RES)
IN WP No. 17419/2026
BETWEEN:
1. MR. SHIVAPURAM RAM MOHAN
S/O S. T. SATYANARAYANA,
AGED ABOUT 61 YEARS
RESIDING AT NO 1113/C,
KAMALAVASINI UPSTAIRS,
1ST H MAIN, GIRI NAGAR
2ND PHASE, BENGALURU-560085
…PETITIONER
(BY SMT. C. DHANA LAKSHMI, ADVOCATE FOR
SMT. MAHIMA DASAIN.,ADVOCATE)
AND:
1. UNION OF INDIA
REPRESENTED BY SECRETARY,
MINISTRY OF CORPORATE AFFAIRS, C-1/25,
PANDARA PARK, NEW DELHI - 110 003.
2. REGISTRAR OF COMPANIES,
E WING, 2ND FLOOR,
KENDRIYA SADANA, KORAMANGALA,
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
BENGALURU 560 034
…RESPONDENTS
(BY SRI. KUMAR M N, CGSPC, FOR R1 & R2)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF
MANDAMUS OR ANY OTHER APPROPRIATE WRIT OR ORDER OR
DIRECTION OF RESPONDENTS NO.1 & 2 TO REACTIVATE THE
PETITIONER' S DIN NO.05138403 WITH IMMEDIATE EFFECT.
IN WP NO. 10482/2026
BETWEEN:
1. SRI. JALAJ KOTHARI
S/O SUNIL KOTHARI,
AGED ABOUT 35 YEARS
PLOT NO. 9, PRAGATI NAGAR,
KISHANGARH, MADANGANJ, AJMER,
RAJASTHAN-305801
DIN 08192171
...PETITIONER
(BY SRI. SHASHANK REDDY B K, ADVOCATE FOR
SRI. MISHRA VINAY KUMAR.,ADVOCATE)
AND:
1. UNION OF INDIA
REPRESENTED BY DIRECTOR GENERAL
OF CORPORATE
MINISTRY OF CORPORATE AFFAIRS,
SHASTRI BHAWAN, RAJENDRA PRASAD ROAD,
NEW DELHI-110001
2. THE REGIONAL DIRECTOR
- SOUTH WESTERN REGION MINISTRY
OF CORPORATE AFFAIRS 'E' WING,
2ND FLOOR, KENDRIYA SADANA,
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WP No. 17419 of 2026
C/W WP No. 10482 of 2026
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KORMANGALA, BANGLORE-560034,
KARNATAKA
3. REGISTRAR OF COMPANIES
- KARNATAKA MINISTRY OF
CORPORATE AFFAIRS 'E' WING,
2ND FLOOR, KENDRIYA SADANA,
KORMANGALA, BANGLORE-560034,
KARNATAKA
...RESPONDENTS
(BY SRI. KUMAR M N., CGSPC FOR R1 TO R3)
THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO SETTING ASIDE THE
DEACTIVATION OF THE PETITIONERS DIN VIDE ANNEXURE-E,
AND THEREBY DIRECTING THE RESPONDENT NO.2 TO RE-
ACTIVATE THE PETITIONERS DIRECTOR IDENTIFICATION
NUMBER (DIN)- 08192171.
THESE PETITIONS, COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE
THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
ORAL ORDER
The present writ petitions are filed seeking for the
following reliefs:
WP No.17419/2026
"i) Issue a Writ of Mandamus or any other
appropriate Writ or order or direction to Respondents No.
1 & 2 to reactivate the Petitioner's Din No. 05138403 with
immediate effect.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
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WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
ii) Allow the Petitioner to file his pending web
Form DIR-3 KYC for all outstanding upon reactivation of
the DIN, without Imposition of any penalty or late fee
attributable to the period during which the DIN remained
illegally deactivated.
iii) To direct the Respondents to pay the costs of
this Petition to the Petitioner
iv) Grant such other and further order(s) as the
Hon'ble court deems fit and proper in the interest of
justice and circumstances of the case."
WP No.10482/2026
a. Setting aside the deactivation of the
Petitioner's DIN vide Annexure-E, and thereby directing
the Respondent re-activate the Petitioner's Director No.2
to Identification Number (DIN) - 08192171;
b. Setting aside the order/communication
24/02/2025 issued by the Director General of Corporate
Affairs (Respondent No.1) bearing reference number
CRF_202505092496605, in so far as it pertains to the
deactivation of the Petitioner's DIN, the details of the said
order which is forthcoming at Annexure-D;
c. Direct the Respondents to afford an
opportunity of hearing to the Petitioner, before
deactivating his Director Identification Number in the
future;
d. Pass such other Orders as this Hon'ble Court
deems fit given the facts and circumstances of the instant
case, in the interest of Justice and Equity."
2. The petitioners are aggrieved by the de-activation
1
of their Director Identification Number by the respondents. In
1
Hereinafter referred to as 'DIN'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
this context, it is forthcoming that the petitioner in WP
No.17419/2026 was assigned DIN 05138403 and the petitioner
in WP No.10482/2026 was assigned DIN 08192171. The said
DINs have been deactivated by the respondents.
3. In this context, it is submitted on behalf of the
respondents that complaints were received and an enquiry was
conducted after issuing notice to the parties.
4. Learned counsel for the petitioner in
WP.No.17419/2026 submits that the petitioner participated in
the enquiry and filed reply, consequent to which, without
further information, the DIN of the petitioner has been
deactivated.
5. Learned counsel for the petitioner in
WP.No.10482/2026 submits that the petitioner has not received
any notice and without the petitioner having participated in the
enquiry, the DIN has been deactivated.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
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WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
6. Further, it is submitted on behalf of the petitioner
2
that by virtue of Section 206 of the Companies Act, 2013
having regard to sub-Section (4), the enquiry has to be
conducted and the punishment has to be imposed only in terms
of sub-Section (7).
7. The said Section 206 of the Act reads as under:
"206 . (1) Where on a scrutiny of any document filed by a
company or on any information received by him, the
Registrar is of the opinion that any further information or
explanation or any further documents relating to the
company is necessary, he may by a written notice require
the company—
(a) to furnish in writing such information or
explanation; or
(b) to produce such documents,
within such reasonable time, as may be specified in
the notice.
(2) On the receipt of a notice under sub-section (1), it
shall be the duty of the company and of its officers
concerned to furnish such information or explanation to
the best of their knowledge and power and to produce the
documents to the Registrar within the time specified or
extended by the Registrar:
Provided that where such information or explanation
relates to any past period, the officers who had been in
the employment of the company for such period, if so
called upon by the Registrar through a notice served on
them in writing, shall also furnish such information or
explanation to the best of their knowledge.
2
Hereinafter referred to as the 'Act'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
(3) If no information or explanation is furnished to the
Registrar within the time specified under sub-section (1)
or if the Registrar on an examination of the documents
furnished is of the opinion that the information or
explanation furnished is inadequate or if the Registrar is
satisfied on a scrutiny of the documents furnished that an
unsatisfactory state of affairs exists in the company and
does not disclose a full and fair statement of the
information required, he may, by another written notice,
call on the company to produce for his inspection such
further books of account, books, papers and explanations
as he may require at such place and at such time as he
may specify in the notice:
Provided that before any notice is served under this sub-
section, the Registrar shall record his reasons in writing
for issuing such notice.
(4) If the Registrar is satisfied on the basis of information
available with or furnished to him or on a representation
made to him by any person that the business of a
company is being carried on for a fraudulent or unlawful
purpose or not in compliance with the provisions of this
Act or if the grievances of investors are not being
addressed, the Registrar may, after informing the
company of the allegations made against it by a written
order, call on the company to furnish in writing any
information or explanation on matters specified in the
order within such time as he may specify therein and
carry out such inquiry as he deems fit after providing the
company a reasonable opportunity of being heard:
Provided that the Central Government may, if it is
satisfied that the circumstances so warrant, direct the
Registrar or an inspector appointed by it for the purpose
to carry out the inquiry under this sub-section:
Provided further that where business of a company has
been or is being carried on for a fraudulent or unlawful
purpose, every officer of the company who is in default
shall be punishable for fraud in the manner as provided in
section 447.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
(5) Without prejudice to the foregoing provisions of this
section, the Central Government may, if it is satisfied that
the circumstances so warrant, direct inspection of books
and papers of a company by an inspector appointed by it
for the purpose.
(6) The Central Government may, having regard to the
circumstances by general or special order, authorise any
statutory authority to carry out the inspection of books of
account of a company or class of companies.
(7) If a company fails to furnish any information or
explanation or produce any document required under this
section, the company and every officer of the company,
who is in default shall be punishable with a fine which
may extend to one lakh rupees and in the case of a
continuing failure, with an additional fine which may
extend to five hundred rupees for every day after the first
during which the failure continues."
8. It is further forthcoming that the enquiry has been
conducted against the petitioner in WP.No.17419/2026 by
taking recourse to Rule 11 of the Companies (Appointment and
3
Qualification of Directors) Rules, 2014 . The said Rule 11 reads
as under:
"11. Cancellation or surrender or Deactivation of
DIN. –
The Central Government or Regional Director (Northern
Region) Noida or any officer authorised by the Regional
Director may, upon being satisfied on verification of
particulars or documentary proof attached with the
application received from any person, cancel or deactivate
the DIN in case —
3
Hereinafter referred to as 'Rules'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
(a) the DIN is found to be duplicated in respect of the
same person provided the data related to both the DIN
shall be merged with the validly retained number;
(b) the DIN was obtained in a wrongful manner or by
fraudulent means;
(c) of the death of the concerned individual;
(d) the concerned individual has been declared as a person
of unsound mind by a competent Court;
(e) if the concerned individual has been adjudicated an
insolvent:
Provided that before cancellation or deactivation of DIN
pursuant to clause (b), an opportunity of being heard shall
be given to the concerned individual;
Form DIR-5
(f) on an application made in by the DIN
holder to surrender his or her DIN along with declaration
that he has never been appointed as director in any
company and the said DIN has never been used for filing
of any document with any authority, the Central
Government may deactivate such DIN:
Provided that before deactivation of any DIN in such case,
the Central Government shall verify e-records.
Explanation.– For the purposes of clause (b) –
(i) the term “wrongful manner” means if the DIN is
obtained on the strength of documents which are not
legally valid or incomplete documents are furnished or on
suppression of material information or on the basis of
wrong certification or by making misleading or false
information or by misrepresentation;
(ii) the term “fraudulent means” means if the DIN is
obtained with an intent to deceive any other person or any
authority including the Central Government."
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:58665
WP No. 17419 of 2026
C/W WP No. 10482 of 2026
CNR: KAHC010381712026
9. It is pertinent to notice that recourse to Rule 11 of
the Rules could be taken only in the circumstances as specified
in the said Rules.
10. It is forthcoming that the allegation against the
petitioners is not one of the circumstances mentioned in Rule
11 of the Rules.
11. The respondents have further contended that the
petitioners were required to file DIR-3 KYC periodically, which
has not been done.
12. It is the contention on behalf of the petitioners that
even for the purpose of filing DIR-3 KYC, the DIN is required.
13. It is clear and forthcoming from the aforementioned
that the action of the respondents in deactivating the DIN is ex
facie untenable and liable to be interfered with.
14. Accordingly, respondents Nos.1 and 2 are directed
to reactivate the petitioners DIN forthwith, in any event, not
later than one week from the date of receipt of a copy of this
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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CNR: KAHC010381712026
order. Further the respondents shall permit the petitioners to
file the pending DIR-3 KYC Forms upon activation of the DIN;
15. This order will not preclude the respondents from
taking further action in accordance with law.
16. The writ petitions are disposed of in the aforesaid
terms.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
(C.M. POONACHA)
JUDGE
ND/List No.: 1 Sl No.: 43