Nagarjuna Reddy Nagireddy, V. Union of India,

WP/11322/2020

AI Insights

The case involves multiple writ petitions filed by directors of various companies against the Union of India and the Registrar of Companies, challenging the disqualification of directors and deactivation of their DINs under the Companies Act, 2013. The petitioners argued that the actions taken by the respondents were arbitrary, illegal, and violated principles of natural justice, as they were based on a retrospective application of Section 164(2)(a) of the Companies Act, 2013, which came into effect on 01.04.2014. The respondents contended that the disqualifications were automatic due to non-compliance with statutory requirements of filing annual returns and financial statements for three consecutive years. The court found that the retrospective application of the law was not justified and set aside the actions taken against the petitioners.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 721773 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 29-07-2020
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax (Central) vs. Atika Township Private Limited, Yashodhara Shroff vs. Union of India, Gaurang Balvantlal Shah vs. Union of India, Bhagavan Das vs. Union of India
• Laws Referred To: Companies Act, 2013, Companies (Appointment of Directors) Rules, 2014, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO
• Assessee Lawyers: KAILASH P S S
• Keywords: Deactivation of DIN; Director Identification Number (DIN); Disqualification of Directors; Natural Justice; Retrospective effect; Writ of Mandamus
• Section: 151; 226; 248; 252; 164(2)(a)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY NINTH DAY OF JULY TWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE A. RAJASHEKER REDDY WRIT PETITION Nos. 11322, 1 1 383. 11405 and 11411 of 202A WRIT PETITION NO: 11322 OF 2020 Between: L Nagarjuna Reddy Nagireddy, S/o Pedda Venkata Reddy Nagireddy, Age_d about 48 - ydars, Occupation: Business, Rio. H.No.1-74118, Plot No.27, Emerald Garden, Guttala Begumpet, N/adhapur, Hyderabad, Telangana, 2. Harita Priyadarshini Nagireddy, W/o. Nagarjuna Reddy Nagireddy, 4g\"! about 47 years, Occupation, Business, R/o. H.No. 1-74118, Plot No.27, EmeralcJ Garden, Guttala Begumpet, [t/adhapur, Hyderabad, Telangrnr. ...rrTlTlONERS AND 1. Union of lndia, represented by its Secretary N/inistry of Corporate Affairs, 'A' Wing, Shastri Bhawan, Rajendra Prasad Road, New Delhi, Delhi 110001. 2. Registrar of Companies, (Andhra Pradesh and Telangana) 2nd Floor, Corporate Bhawan, GSI Post, Tattiannaram Nagole, Bandlaguda. ...RES'ONDENTS Petrtion under Article 226 of the Constitution of lndia praying that in the circunrstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or direction or any other proceedings one in the nature of Writ of N/andamus declaring the action of Respondents in deactivating the DIN number 02008630 of Petitioner No.1 and 01844306 of Petitioner No,2 and restricting the Petitioners from filing ,statutory returns, i.e., the annual returns and financial statements of the companies in which Petitioners are Directors as arbitrary, illegal, without jurisdiction, contrary of the provisions of the Companies Act, 2013 and Rule 11 of the Companies (Appointment of Director) Rules, 2014, violative of the principles of natural justice besides vlolating the Petitioners'rights guaranteed under Article 14 and Article 19 (1)(g) of the Constitution of lndia. lA NO: 1 oF 2020 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 direct the Respondents to restore the DIN No.02068630 of Petitioner No. 1 and 01844300 of Petitioner No.2 and their digltal signatures. lA NO: 2 OF 2024 Petition uncler Section 151 CPC praying that in the circumstances stated ln the affidavit filed in support of the petition, the High Court may be pleased to suspend the disqualifying the Petitioners as Directors. Counsel for the Petitioners: SRl. KAILASH NATH P'S.S' Counsel for the Respondents: SRl. NAMAVARAPU RAJESHWAR RAO, ASSISTANT SOLICITOR GENERAL WRIT PETITION NO: 11383 OF 2020 Sri Lakshrni Narayana Jasti, S/o Sri Justice Chelanreshw_ar J., Age.d. about ll8 years, nlo- 1 -'2-SgZl3lDlg, Lower Tank Bund, Opp: Rama Chandra lV]ission, Donralguda Himayerthnagar, Hyderabad, Telangana -500029. ...F,ETlTtOl,tER Betweeln: Af 'lD 1 2 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 pass an order or direction or any other proceedings one in the nature of Writ of 1t,4erndamus declaring the action of respondents in disqualifying the petitione,rs as a directors and deactivating the petitioner Director ldentification Number (DlN) 02912130 and restricting the petitioner to incorporate new companies Urrder Compernies Act. 2013 as arbitrary, illegal, without jurisdiction, contrary of the provisi,cns of the Companies Act, 2013 and Rule 11 of the Companies (Appointrnenl of Directors) Rules, 2014, violative of the principlt;s of natural justice besides vrolziting the pertitioner rights guaranteed under Article 14 and Arlicle 19 (1) (g) of the Constitution of lndia. lA NO: 1 OF 2020 Petition under Section 151 CPC praying that in the circumstances staterd in the affidavit filed in support of the petition, the High Court may be pleased to dtrecl the 1st Respondent to stay the disqualification and restore the petitioner Director ldentification Number (DlN) 02912130 the petitioner so as to enable the petitionr:r to incorporate new companies Under Companies Act. 2013, Counsel for the Petitioner: Ms. G. SUMATI-|I Counsel for the Respondents: SRl. NAMAVARITPU RAJESHWAR RAO, ASSISTANT SISLICITOR GE NERAL Between: -f he tVinistry of Corporate Affairs, A Wing, Shastn Bhawan, Rajendra Pras;ad lRoad, New-Delhi - '110 001, Represented by'its Secretary. - 'fhe Registrar of Companies (For State of Tt;langana), 2nd Floor, Corporate 13hawan\", GSI Post, Tattiannaiam Nagole, Biandlaguda Hyderabad - ii0O 068. .,.RESPONDENTS Bejavada Rambabu, S/o. Bejavada Venkata Subbiah, aged qbout 38 years, R/o. H. No. 5-3-316/1, Kukatpally Venkat Rao Nagar, Hyderabad Telangztna - 50007?. Patibandla Venubabu, S/o Subbarao Patibiandla, aged ab