Delhi High Court orders to reactivate the DINs and DSC of Directors alleged of Non-Compliance and Non-Filing of Balance Sheets and Returns [Read Order]

Delhi High Court - DINs - DSC - non-compliance - non-filing of balance sheets - returns - Taxscan

The Delhi High Court ordered the reactivate the Director Identification Numbers (DINs) and Digital Signature Certificates (DSCs) of Directors alleged of non-compliance and non-filing of balance sheets and returns of the company for several years.

The Petitioners are Directors of Nanda Industrial Consultants Private Limited. The present writ petitions have been preferred seeking directions for reactivation of their DINs and DSCs numbers in order to enable them to file the necessary documents.

The numbers of the Petitioners have been deactivated owing to non-compliance and non-filing of balance sheets and returns of the Company for several years. The Petitioners were initially disqualified from acting as Directors, under Section 164(2)(a) of the Companies Act, 2013 which then resulted in the deactivation of DIN and DSC numbers.

Mr. Singh, counsel for the Petitioners/Applicants, submitted that if the DINs/ DSCs are being reactivated, he does not press the prayers challenging the constitutional validity of Section 164 of the Companies Act, 2013.

The division judge bench Justice Prathibha M.Singh and Justice Subramonium Prasad noted that a substantial period of disqualification has already been undergone by the Petitioners. Re-appointment of new directors, seeking approval for the same, and then filing documents of the Company under the Scheme, would be an impractical solution.

Thus the court while leaving questions of law open, in the facts and circumstances of these two cases, in order to enable the Petitioners/Directors to avail of the Scheme, directed that the DINs and DSC of the Petitioners be reactivated within 24 hours.

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