Toleti Sreenivasakalyanan Chakravarthy and Anr. v. Ministry of Corporate Affairs and Anr.

Delhi High Court · 19 Dec 2017 · 2017:DHC:8653
Vibhu Bakhru
W.P.(C) 11292/2017
2017:DHC:8653
corporate appeal_dismissed Significant

AI Summary

The Delhi High Court allowed disqualified directors to withdraw their petitions with liberty to avail the Condonation of Delay Scheme, 2018, permitting temporary activation of DINs and setting conditions for participation even if their companies were struck off.

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$-202,~04 HIGH COURT OF DELHI
W.P.(C) 11292/2017 & CM 46150/2017
TOLETI SREENIVASAKALYANAN CHAKRAVARTHY AND ANR. ..... Petition~rs
Through Mr Azeem Samuel, Advocate.
VERSUS
MINISTRY OF CORPORATIE AFFAIRS AND ANR. ..... ResponQents
Through Mr Sanjay Jain, ASG with Ms Ripti Daman Bhardwaj, CGSC with Mr T.p. Singfu.
Mr Dev P. Bhardwaj, CGSC for UOL Mr Sanjay Shorey, Joint Direrctor Legal MiIjlistry of Corporate Affairs and Sh Raesh K. Tiwari, ROC, NCT of Delhi & Haryana MCA for UOL
203.
Y W.P.(Cl 11297/2017 & CM 46155/2017 VEERABHDRA RAO KUNAM AND ANR. ..... Petitioner
VERSUS
MINISTRY OF CORPORATIVE AFFAIRS AND ANR. ..... Resppndent
Through Mr Sanjay Jain, ASG with Ms Ripij Daman Bhardwaj, CGSC with Mr T.p. Sing~.
Mr Dev P. Bhardwaj, CGSC for UOL ! Mr Sanjay Shorey, Joint Direrctor Legal Mi~istry of Corporate Affairs and Sh Raesh K. Tiwari, ROC, NeT ofDelhi & Haryana MCA for UOL
2017:DHC:8653 204.
W.P.(C) 11298/2017 & CM 46156/2017
VEERABHADRA RAO KUNAM AND ANR. ..... Pe itioner
VERSUS
MINISTRY OF CORPORATE AFFAIRS AND ANR.
, Through Mr Sanjay Jain, ASG with Ms Rip Daman Bhardwaj, CGSC with Mr T.p. Sin
Mr Dev P. Bhardwaj, CGSC for UOI.
Mr Sanjay Shorey, Joint Direrctor Legal Mi istry of Corporate Affairs and Sh Raesh K. Tiwa "
ROC, NCT ofDelhi & Haryana MCA for U I.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
0/0 19.12.2017
ORDER

1. Learned counsel for the petitioners seeks to withdraw the resent petitions with liberty to avail of the Condonation of Delay Schem, 2018 (CODS-20I[8]).

2. Paragraph 6 of CODS-2018 provides that the scheme is ithout • prejudice to any action under Section 167 (2) of the Companies Act, any Civil or Criminal liabilities, if any, of such disqualified director during the period they remained disqualified. Mr Sanjay Jain Leame ASG clarifies, on instructions, that this provision would be applicable respect ofthose directors who do not avail of the CODS-20I[8]. He st tes that this is amply clarified by the opening sentence of paragraph 6,[1] which I..,4, expressly indicates that that the Registrar _will withdraw prosecutio s) for all documents filed under the scheme. Thus, the question of institutin fresh prosecution against those disqualified directors who avail ofthe COD -2018 does not arise.

3. Learned counsel further requests that the DIN numbers f the petitioners may be temporarily activated as contemplated under the sc erne.

4. It is seen that the scheme itself contemplates that the DIN Num ers of the disqualified directors would be temporarily activated with effec from 01.01.2018.:

5. In view of the request made by the petitioners, the impugned Ilist to the extent it includes the names of the petitioners is stayed. This is to ~nable the petitioners to carry on their business. This order is passed on the b sis of the unequivocal statement made on behalf of the petitioners that they ould be availing ofthe CODS-2018.

6. It is clarified that if the petitioners do not avail of the CODS-2 stated by them; in addition to other consequences, the petitioners wou d also be liable to be prosecuted for contempt ofCourt.

7. The petitions are dismissed as withdrawn, with the af1resaid clarification/observations. The pending applications are also disposed tf.

VI VIBHU BAKH U, J DECEMBER 19, 2017 pkv $- 35 (writ) >!< IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 11297/2017 VEERABHADRA RAO KUNAM AND ANR...... Petitioners Through: Mr Azeem Samuel, Advocate.

VERSUS

MINISTRY OF CORPORATIVE AFFAIRS ANDANR. Through CORAM: HON'BLE MR.

1. The petitioners have filed this application, inter alia, praying that orders be passed to enable the petitioners to avail of the Condonation of Delay Scheme - 2018 (CODS-2018). The above-captioned writ petition was withdrawn by the petitioners on 19.12.2017 to avail ofthe CODS-2018. The petitioners now state that they are unable to avail of the benefits of the said scheme as the companies in which they were directors have been struck off from the Register of Companies.

2. The learned counsel appearing for the petitioners has handed over the order dated 27.04.2018 passed by a Coordinate Bench of this Court in W.P.(C) 4446/2018 captioned "Lakavarapukota Gang Trinadha Rao and Anr. v. Ministry of Corporate Affairs and Anr.", whereby the petition was disposed of in terms of the interim order passed by the Division Bench of this Court on 21..03.2018 in a batch of writ petitions.

3. The respondents does not dispute that the subject matter ofthe present petition is identical to the subject matter in case of Lakavarapukota Gang Trinadha Rao and Anr. (supra). Accordingly, the present application is disposed ofwith the following directions:-

(i) The operation of list of disqualified directors in so far as the inclusion of the name of the writ petitioner is concerned, shall remain stayed.

(ii) The DIN and DSC of the writ petitioner will stand activated.

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(iii) The writ petitioner will have liberty to apply under the

Condonation of Delay Scheme, 2018 (hereafter "scheme"). Permission is granted to make the requisite filings in the form ofhard copies.

(iv) The writ petitioner will deposit a sum of ~30,0001- qua each such company vis-a-vis whom steps for voluntary striking off are required to be taken. The said amount will be deposited in the form of Fixed Deposit Receipt (FDR) with the Registry of this Court on or before 07.05.2018. The FDR will be created in favour ofthe ROC.

(v) The amount deposited by way of FDR, as adverted to in clause (iv), will be in addition to other charges that would be payable under the Scheme. These sums will be deposited in the form of FDR as well. The writ petitioner will also furnish their calculations in that behalf.

4. The writ petitioners will abide by the Division Bench-I order dated 21.03.2018, passed in a batch of writ petitions, the lead petition being W.P. (C) 9439/2017, captioned "Atul Khosla & Anr. v. Union a/India and Ors".

5. Liberty, however, is given to both the petitioners and the official respondents to revive the petition, in case, there are issues which are not covered by the Division Bench judgment.

6. Needless to say, the disposal of the writ petition will not come in the way of the official respondents presenting their point of view before the Division Bench.

7. Order dasti under signature ofCourt Master. MAY 02, 2018 RK VIBHU BAKHRU, J