Ranadheer Kanakamedala V. Union of India

WP/16255/2020

AI Insights

The case involves Ranadheer Kanakamedala, the petitioner, who challenged his disqualification from directorship and the deactivation of his DIN by the Registrar of Companies. The disqualification was based on alleged defaults in filing financial statements and annual returns for three consecutive years, as per Section 164(2)(a) of the Companies Act, 2013. The petitioner argued that the application of this provision retrospectively was illegal and that the DIN could not be deactivated for the reasons cited. The court examined the legislative intent, relevant circulars, and precedents to conclude that the disqualification and DIN deactivation were improperly applied.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 677456 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 22-09-2020
• Assessment Year: misc
• Other Referred Cases: COMMISSIONER OF INCOME TAX (CENTRAL)-L NEW DELHI v. VATIKA TOWNSHIP PRIVATE LIMITED, YASHODHARA SHROFF vs. UNION OF INDIA, GAURANG BALVANTLAL SHAH S/O BALVANTLAL SHAH vs. UNION OF INDIA, BHAGAVAN DAS DHANAPALY DASS vs. UNION OF INDIA
• Laws Referred To: Companies Act, 2013, Companies Act, 1956, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO
• Assessee Lawyers: VANGA ANITA
• Keywords: Annual Returns; Director Identification Number (DIN); Disqualification from directorship; Financial Statements; Natural Justice
• Section: 151 CPC; 248(1)(c); 164(2)(a)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) TUESDAY ,THE TWENTY SECOND DAY OF SEPTEIVBER TWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM Between: Ranadheer Kanakamedala, S/o Ravindra Kumar.Kanakamedala A-g^e' ^43 Years' occ. Business, R/o. 509 6\"rir.-iiiro No.A6 Junitee Hills. Hyderabad - 500033 ...PETITIONER Union of lndia, Rep by its secretary, tr,4inistry of Corporate Affairs Shastry Bhavan. Dr. Rajendra Prasad lt4arq New Delhi in\" n\"oiitrar Office of Reqistrar df Companies. ROC. 2nd Floor' Corporate ehru\"n: Near Central Wate-r Board, GST Post, Bandlaguda, Nagole' Hyderabad - 500068 ...RES'.NDENTS IT PETITION NO: 16255 oF2 20 AND 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 issue any writ, order or direction more particularly one in the nature of writ of Ir,4andamus to permit the Petitioner to continue as a Director of the Company andior get appoint or reappointed as a Director of any Company without any interference. 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 stay of the disqualification of directorship of the petitioner by activating the DIN No. 03287892 and digital signatures of the Petitioner, in so far as the Petitioner herein is concerned, pending disposal of the above writ petition. Counsel for the Petitioner : SMT. VANGA ANITA Counsel for the Respondents: SRI NAMAVARAPU RAJESHWAR RAO ASST. SOLICITOR GENERAL The Court made the following: ORDER THT: FION'BLE SRI JUSTICE CHALLA KOI)ANDA RAM oRpEJl: WRIT PI'TITION No. 16255 of 2020 The petitioner challenges his disq uar ifr cation from Directorshrp under Section l6ae) of the Compan:es .{ct, 2O 13, for the allegec. c.efault in filing financial statement/Ar.)ruar Returns, and consetluently seek restoration of his Directo:. Identification Number (D.N, viz., O32B7gg2. Learrec counsel for the petitioner submits thar the issue raised irL :.:te present Writ petition is squareiy cov,jrecl bv the common orcier dated 18.07.2019 in W.p.No.542.2 ol 2Olg and batch. Learned Standing Counsel for the 2nd responrleni. - Registrar. of Companie:; rloes not ciispute the aforesaid submissjor). Operativ,: portion of the aforesaid order reads rs, Lrnder: 'Fcr the foregoing reasons, the impugned ordr:rs in the writ petitions to the extent of disqualiiyinE, the petilioner:i under Section 164(2)(a) of the Act and deactivatir>n of their DINS, are set aside, and ::h: 2\"d respondenE is directed to activate the DlNs of the petiti(,ners, enabling tlem to function as Directors other than in r;trike off c rmparLies. l(t rs made clear that this order will not pre:lude the 2\"d lespon,lent from taking approPrlate action in accorclance with lau' f()r violations as envisaged under Section Ltt4 2l ot the Act. giving the said Provision prospective eflect from O1.o4.2Olz. and for necessary action against DIN irr case of viola:ions ,rf Rule 11 of the Rules. Ili is also ntade clear that if the Petltioners are aggtigvgd ly the action of the respondents in striking off ti',\"u ir t o'n p\"\"\"' **' ^:::'\"\":fi t ::.::::::; \" :;' \"'T':'\" libertl' to avail altetnative Act. I 2 All the writ petitions are accordingly allowed to the extent indicated above.,' In view of the said Order dated 19.07.2019 and for the reasons recorded therein, this Writ petition is also allowecl in terms thereof, No costs. Miscellaneous Petitions, if any pending, shall stand closed, SD/.K,AMMAJI ASSISTANT REGI9TRAR ,TRUE COPY/I *// SECTIdil OFFICER To, 1. The Secretary,Union of lndia, Ministry of Corporate Affairs. Shastry Bhavan, Dr. Rajendra Prasad lVarg, New Delhi. 2. The Registrar, Office of Registrar of Companies. ROC, 2nd Floor, Corporate Bhavan, Near Central Water Board, GST Post, Bandlaguda, Nagole, Hyderabad - 500068. 3 One CC to Smt. Vanga Anita Advocate [OPUC] 4, One CC to Sri Namavarapu Rajeshwar Rao, Asst. Solicitor General, Advocate [OPUC] 5. Two CD Copies (Along with a copy of order dt:1810712019 in W,P.No.5422 of 2018 and Batch) SM V. HtGH COIJFilt DATED:22-l{t912020 ORDER WP.No.16115lli of 2020 ALLOWINGII{=WP *E Sie 14- 3 30SiEP2020 ) 2 o . * WITHOUT COS TS ).o),0 F( C q 'lss2arct'89 6 THE HON'BLE SRI ]USTI E A,RA]ASHEKER REDDY W,P.NOs.5422. 12144. 13520, 13743, 13855, 14166, 24O51.30993. 5 47 2 56 5 a7 7 o47 6t40, 64A4, 67s3, 68s8. 6958.598 1JSOl -7 008 J 074, 7 046, 7 069, 7073.7tos, 7432, 7454. 7572. 7595, 7732. 7765. 776A, 7824, 797A, 8111, 8223. 8586, 8590. 9333, 9340, 9381, 9468. 9563, 9584, 9623. 9726.9737. 10058. 10099. 11208. 11223. 11239. 11263, 11889. Lt99L. L20t8. t2036. 12040, t2069, t2tOA, 12144. 12786, 12L94, 12200. L2209. 122L5, 122L7, L2243, 12260, L2262, L22aA. 12342. 1r?En I )A1'' 1)A'l) 1)i'r1 1) qR t r