Mr. Amilineni Devarajulu Naidu V. Union of India and Another

WP/13605/2020

AI Insights

The case involves Mr. Amilinenr Devarajulu Naidu, the petitioner, who challenged the deactivation of his DIN and his disqualification as a director for a period from November 1, 2018, to October 31, 2023. The deactivation and disqualification were based on his failure to file financial statements or annual returns for three consecutive years, as per Section 164(2)(a) of the Companies Act, 2013. The petitioner argued that the action taken by the respondents was arbitrary, illegal, and violated principles of natural justice, as it was applied retrospectively. The court examined the provisions of the Companies Act, 2013, and relevant rules, and found that the law was applied retrospectively, which was not permissible. Consequently, the court set aside the orders of disqualification and DIN deactivation.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 721738 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 31-08-2020
• Assessment Year: misc
• Other Referred Cases: WP No.5422 of 2018 & batch, YA9HODHARA SHROFF vs. UNION OF INDIA, GAURANG BALVANTLAL SHAH vs. UNION OF INDIA, BHAGAVAN DAS DHANANJAYA 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: MANDADAPU BABU
• Keywords: DIN Deactivation; Director disqualification; Natural justice violation; Retrospective Legislation; Writ of Mandamus
• Section: 151; 226; 455; 248(1)(c); 164(2)(a); 764(2)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IVONDAY, THE THIRTY FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY PRESENT THE HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY WRIT PETITION NO: 13605 OF 2020 Betwee n Mr. Amilinenr Devarajulu Naidu, S/o. Venkatarama Naidu, Aged About B0 Years, Occ. Business, R/o. H.No.2-56, Officers Line, Kongareddipalli, Chittor, Andhra Pradesh, lndia - 517001 ...PETITIONER AND 1. Union of lndia, The Ministry of Corporate Affairs, Represented by its Secretary, A-Wing, Shastri Bhawan, Rajendra Prasad Road, New Delhi - 110 All 2. The Registrar of Companies, Telangana State, 2\"\" Floor, Corporate Bhawan, GSI Post, Tattianaram, Nagole, Bandlaguda, Hyderabad - 500 068 .,.RESPONDENTS 1 & 2 Petition under Article 226 of lhe 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 proceeding one in the nature of Writ of IVlandamus declaring the action of respondents in deactivating the DIN Number 05130975 for the disqualification period from 1.11.2O18 to 31.10.2023 of the Petitioner and restricting the petitioners from filing statutory returns, i.e., the annual returns of the companies in which the petitioner is director, as arbitrary, illegal, without jurisdiction, contrary of the provisrons of the Companies Act, 2013 and Rule 1 1 of the Companies (Appointment of Directors) Rules, 2014, violation of the principle of natural justice besides violating the petitioner rights guaranteed under Article 14 and Article t I (t ) (g) of the Constitution of lndia lA NO: 1 OF 2020 Petitiorr 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 1'r respondent lo restore the DIN number 05130975 for the disqualification period from 1.11,2018 to 31,10.2023 of the Petitioner. So as to enable him to submit the annual returns and Financial Statements of the companies in which the petitioner is acting as d irecto r Counsel for the Petitioner : SRI MANDADAPU AJAY BABU The Court made the following: ORDER Counsel for the Respondents : SRI NAMAVARAPU RAJESHWAR RAO ASSISTANT SOLICITOR GENERAL I HON'BLE SRI JUSTICE A.RAJASHEKER REDDY Writ Petition No.136O5 OF 2O2O Learned counsel for the petitioner as u,ell as Sri Namavarapu Rajeshwar Rao, Iearned Assistant Solicitor General of India, appearing for the respondents submits that the lis in this Writ Petition is squarely covered b1'the Common Orders of this Court in WP No.5422 of 2O18 & batch, dated 7a.O7 .2019. In vieu' of the same and for the reasons alike in the Common Order in WP N