Delhi HC orders reactivation of DIN/DSC of directors of defaulting Cos. to allow them to start a new business
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 15 July, 2021
Latest from Taxmann
Case details: ANANT NARAIN v. Union of India - [2021] 127 taxmann.com 895 (Delhi)
Judiciary and Counsel Details
-
- Prathiba M. Singh, J.
- Varun Jain, Adv. for the Petitioner
- Manik Dogra, Adv. for the Respondent.
Facts of the Case
In the instant case, the Petitioners were directors in M/s. Innowin Info Solutions Private Limited, which company was struck off due to non-filing of the company’s financial statements or annual returns for a continuous period of three financial years. As a result, the Petitioners were disqualified and their Director Identification Number (hereinafter, “DIN”) and Digital Signature Certificate (hereinafter, “DSC”) were also deactivated. Now Petitioners wished to start a new business and, prayed for reactivation of their DIN/DSC
In the meantime, the Companies Fresh Start Scheme (CFSS-2020) has been introduced in view of the COVID-19 pandemic with the aim to enable a fresh start to default companies and directors of such companies.
High Court Held
Under this scheme, directors of struck off companies who seek to be appointed as directors of other/new companies, ought to be provided with an opportunity to avail of this scheme, provided that they have undergone a substantial period of their disqualification. The scheme seeks to provide a fresh start for directors of defaulting companies who seek appointments in other companies or wish to start new businesses.
Since petitioners were disqualified directors of struck off companies seeking appointment as directors in other/new companies, their DIN/DSC ought to be reactivated to enable them to conduct their fresh/new business in accordance with law
List of Cases Referred to
-
- Mukut Pathak v. Union of India [2019] 111 taxmann.com 41 (Delhi) (para 3)
- Sandeep Agarwal v. Union of India [W.P. (C) No. 5490 of 2020, dated 2-9-2020] (para 3)
- Radhika Byrne v. Union of India[W.P. (C) No. 5534 of 2020, dated 28-12-2020] (para 3)
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
