Kranthi Kumar Banda V. Union of India and 2 Others

WP/8257/2020

AI Insights

The case involves Kranthi Kumar Banda, the petitioner, who was disqualified as a director and had his DIN deactivated by the Registrar of Companies under Section 164(2)(a) of the Companies Act, 2013, for failing to file financial statements or annual returns for three consecutive years. The petitioner challenged this action, arguing it was arbitrary, illegal, and violated principles of natural justice and constitutional rights under Articles 14 and 19. The court examined whether the law was applied retrospectively and whether the petitioner was given adequate notice or opportunity to contest the disqualification. The court referenced a common order in similar cases and found that the law should be applied prospectively, as clarified by a circular from the Ministry of Corporate Affairs.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 736869 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 18-07-2020
• Assessment Year: misc
• Other Referred Cases: W.P.No.5422 of 2018, YASHODHARA SHROFF vs. UNION OF INDIA, GAURANG BALVANTLAL SHAH S/O BALVANTLAL SHAH vs. UNION OF INDIA, BHAGAVAN DAS DHANANJAYA DAS vs. UNION OF INDIA
• Laws Referred To: Companies Act 2013, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO
• Assessee Lawyers: K KUMAR
• Keywords: Companies Act; Director Identification Number; Disqualification; Natural Justice; Writ of Mandamus
• Section: 164(2); 248; 252

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA (Speciat Originat J urisdiction) FRIDAY ,THE NINETEENTH DAY OF JUNE TWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE A.ABHISHEK REDDY WRIT PETITION NO: 8257 OF 2020 Between: Kranthi Kumar Banda, S/o.Sari.Jagga Reddy Banda, Aged about 37 years, Rlo.12-13-82915/4 and B, Flat No.6, Goplu Nagar, Sneha Deepa Apartments, Tarnaka, Secunderabad-5000 1 7 ...PETITIONER AND 1. Union of lndia, Rep. by Principal Secretary, lr4inistry of Corporate Affairs, 5th floor, A Wing, Sashtry Bhavan, Dr. Rajendra Prasad Road, New Delhi - 1 10001 2. The Registrar of Companies, Andhra Pradesh and Telangana, 2nd floor, Corporate Bhavan, GSI Post, Tattiannaram Nagole, Bandlaguda, Hyderabad-500068,T.S. 3. M/s.Larven Software Solutions Private Limited, H.No. 1-7-92, Opp Geetha Hospital, Chaitanyapuri X Roads, Dilshukh Nagar, Hyderabad- 500060 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue any appropriate writ order or direction more particularly in the nature of a Writ of Mandamus a Declaring the action of the Respondents in disqualifying the Petitioner invoking section 164(2) as arbitrary, illegal, contrary to the principles of natural .justice, in violation of the provisions of the Companies Act 2013 and in contravention of the rights guaranteed under Article 14 Article 19 of the Constitution of lndia and consequently direct the Respondents to restore the DIN No, 03127145 of the Petitioner. lt is prayed that this Honourable High Court is pleased to restore the DIN no 03127145 of the Petitioner so as to enable the Petitioner to comply with statutory requirements as Directors in other active Companies and for other administrative requirements, pending disposal of the Writ Petitio n. lA NO: 1 OF 2020 Counsel for the ResPondent No.3: Petition under section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased To restore the DIN no 03127145 of the Petitioner so as to enable the Petitioner to comply with statutory requirements as Directors in other active companies and for other ;dministrative requirements, pending disposal of the Writ Petition' Counsel for the Petitioner :SRl K. PHANI KUMAR counsel for the Respondent Nos.1 & 2: SRI NAMAVARAPU RAJESHWAR RAO' ASST. SOLICITOR GENERAL The Court mldc the follorving: ORDER THE HON'BLE SRI JUSTICE A.ABHISHEK REDDY WRIT PETITION No.8257 of 2O2O ORDER: Aggrieved by the action of thc 2nd rcspondent - The Registrar, Office of the Registrar ol Companies, in disqualifying the petitioner as Director of the Company under Section 16a(2)(a) oi the Companies Act, 2013, and deactivating his Director Identification Number (DIN), the present writ petition is filed. 2. With the consent of both the parties, the present writ petition is disposed of at the admission stage itself. 3. The learned Counsel appearing for the petitioner has contended that the matter is squarely covered by the common order, dated 18.07 .2019, passed by this Court in W.P.No.5422 ol 2018 and batch. Therefore, the writ petition may be allou,ed in lerms of the above rcferred common