Full Judgment Text
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4234/2018 & CM Nos.16577-78/2018
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% Date of decision : 27 April, 2018
SACHIN GARG ..... Petitioner
Through : Mr. Alok Kumar Kuchhal,
Adv.
versus
UNION OF INDIA AND ORS. ..... Respondents
Through : Mr. Vikas Mahajan, CGSC with
Mr. Shyam Sunder Rai and Mr.
Deepak Goyal, Advs. for UOI.
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE C.HARI SHANKAR
JUDGMENT (ORAL)
GITA MITTAL, ACTING CHIEF JUSTICE
CM No.16578/2018
Allowed, subject to just exceptions.
The application is disposed of.
W.P.(C) 4234/2018
1. The writ petitioner complaints that he had been appointed an
Additional Director in a company registered under the name and style
of Shapers Realtors Pvt. Ltd. (hereinafter referred to as the
‘Company’). It is stated that the Annual General Meeting was
thereafter held in 2010 wherein the petitioner had not been regularized
W.P.(C)No.4234/2018 Page 1 of 3
as a Director and therefore, ceased to be a Director by operation of
law.
2. This writ petition has been necessitated inasmuch as the
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respondent no.1, on the 6 of September, 2017 and 12 September,
2017 notified a list of directors who have been disqualified under
Section 164(2)(a) of the Companies Act, 2013 as directors with effect
st
from 1 November, 2016. To the petitioner’s shock, he found his
name featuring in this list. As a result, the petitioner stands prohibited
from being appointed or re-appointed as a director in any other
company for a period of five years.
3. Issue notice. Mr. Vikas Mahajan, Central Government Standing
Counsel accepts notice on behalf of the respondents.
4. It is submitted that in the above facts and circumstances of the
case that the petitioner has resigned from the directorship of the
company in question and information thereof has been filed with the
Registrar of Companies-respondent no.2 as well as notified in the
annual returns of the company with the respondent no.2, the petitioner
would not incur a disqualification under Section 164 of the Companies
Act. Consequently, the disqualification of the petitioner as notified in
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the lists dated 6 September, 2017 and 12 September, 2017 by the
respondent no.1 was incorrect and illegal.
5. In view thereof, the disqualification of the petitioner as notified
in the impugned list as disqualification of the petitioner as a director of
the company and the resultant prohibition under Section 164(2)(a) by
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virtue of the petitioner’s name featuring in the list dated 6 and 12
W.P.(C)No.4234/2018 Page 2 of 3
September, 2017 is hereby set aside and quashed. The respondent
no.2 shall also ensure that its records are properly rectified to delete
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the name of the petitioner from the lists dated 6 September and 12
September, 2017. Action in this regard shall be positively taken
within a period of two weeks from today. Name of the petitioner, as a
director, shall be removed from all records of the respondent no.2 in
the Ministry of Corporate Affairs.
The writ petition is disposed of in the above terms.
CM No.16577/2018
In view of the orders passed in the writ petition, this application
does not survive for adjudication and is hereby dismissed.
Dasti under signatures of the Court Master.
ACTING CHIEF JUSTICE
C.HARI SHANKAR, J
APRIL 27, 2018/ kr
W.P.(C)No.4234/2018 Page 3 of 3