Sri Manne Tirumala Venkata Ramana V. Union of India and another

WP/2256/2021

AI Insights

The case involves two petitioners, Sri l,4anne Tirumala Venkata Ramana and Sri l 4anne Venkata Sandeep, who were directors of certain companies. They were disqualified and their DINs were 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 petitioners challenged this action, arguing it was arbitrary, illegal, and violated principles of natural justice. The court examined whether the disqualification could be applied retrospectively and whether the petitioners were given adequate notice and opportunity to be heard.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 677432 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-02-2021
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax (Central)-1, New Delhi v. Vatika Township Private Limited, Yashodhara Shroff v. 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, Companies (Appointment of Directors) Rules, 2014, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO
• Assessee Lawyers: ANGOTHU NEHRU
• Keywords: Deactivation of DIN; Director Identification Number; Disqualification of Directors; Natural Justice; Writ of Mandamus
• Section: 151; 226; 455; 248(1)(c); 164(2)(a)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (S pec ial Original J u risd iction) WEDNESDAY. THE THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI WRIT PETITION NO: 2256 OF 2021 Between 1. Sri l ,4anne Tirumala Venkata Ramana, S/o K V S H V Satyanarayana lt4anne. Aged about,60 years. R/o Flat G-2, Plot.8-2-31018.121 , Vidushi Villa Apartment. Road No. '14, Nandi Nagar Bus stop. Nandi Nagar. Banjara Hills. Khairatabad, Hyderabad, Telangana Stale- 500034 2. Sri l 4anne Venkata Sandeep, S/o li,4anne Tirumala Venkata Ramana Aged about.35 years R/oH.No.560/4. Road No. 92. Banjara Hills. Shaikpet. Hyderabad, Telangana State -500033. ...'ET'T'ONERS AND 1 2 Union of lndia, Represented by its l 4inistry of Corporate Affairs, Shastri Bhawan, Dr. Rajender Prasad Road New Delhi- 1 1000'1 The Ri:glstrar of Companies, Telangana State, 2nd Floor, Corporate Bhawan, GSI Poat. Tattiannaram Nago e. Bandlaguda. Hyderabad - 500 068 ...RESPONDENTS Petrtion under Article 226 of the Const tut on of lndia praying that n the circumstances stated in the affidavit fi ed therewith, the High Court may be pleased to pass an order or direction or any other proceedings one in the nature of Writ of l ,4andamus declaring the action of respondents in disqualifying the petitioner as directors and deactivating the 1st petitioner Director ldentification Number (DlN) 00291236 2nd petitioner Director ldentification Number (DlN) 00291751 , and restricting the petitioners from frling statutory returns. i.e,. the annual returns and financial statements of the Companies in which they are Directors as arbitrary. illegal, without jurisdiction, contrary of the provisions of the Companies Act. 2013 and Rule 11 of the Companies (Appointment of Directors) Rules, 2014, violative of the principles of natural lustice besides violating the petitioner rights guaranteed under Article '14 and Article t I (1 ) (g) of the Constitution of lndia. lA NO: 1 OF 2021 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 .1st Respondent to restore the 1'r petitioner Director ldentification Number (DlN) 00291236 2nd petitioner Director ldentification Number (DlN) 00291751, so as to enable petitioners to submlt pending annual returns and financial statements for the companres in which they are appointed as directors and petitloners enable to appoint as directors for the purpose of incorporation of further new companies Under Compan es Act. 2013. Counsel for the Petitioner: M/s. ANGOTHU NEHRU Counsel for the Respondents: SRI NAMAVARAPU RAJESHWAR RAO, ASST.SOLICITOR GENERAL The Court made the following: ORDER THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI WRIT PETITION No.2256 of 2021 ORDER: A_ugrievecl by the action ot' 2\"'r respondent lLegistrar ol ( onrpanies. in disqLialitr irru the pctitioner.s es I)irccr,,rs Lrrdr.r Scrrit.,n 1().1(l)(a) o1' thc Ciomp,.ies .. ct. l0lt lir:rl iu tleecrrrati.e thcir l)ilector lcientitlcation Nuurbers (Dl ). rltc y-.,rcse nr 'r.it I)crtLion hls ber'rr 1l1ed. L Learned coltnsL.l appearine tbr.pctirroncrs e()lrtc.ndcd Lhat tlte /i.i in the present 'rit Petition is squar.elv cover!-rl br the citr.nnror.r or.clcr. dated 18.07.2019 passed by this Court in /.p. o.5,112 ol.20lg ancl batch. and hence the same may accordingll,, be allon ed. 3. Sri N. Rajeshwar Rao, learned Assistant Solicitor appearing for respondents, does not dispute the same 4. The relevant portion of rhe order in W.p.No,5422 of 20lg and batch dated 18.07.20i9, is as under: ''2i. ln r ierr oi'the aboi c llrcts lLnri cire rll_,1lrnce s und Lltc.iLiderncnts le li'rlctl to ,ill,.ti. il: ilte intl..Lttnctl orrlers itt ltrcscIt rrIit 1-rcLiLiLrll: (li5(]LrilLil in- lltg 1,g1l1i,r;1,r1'. 11, directors uncler Scction l5+(l)(a) L,l Lire . e l. [rrc bcen passeci considering the periorl priol to (tl.L)J.l{ll-.l. rhe same cilnnot be sustained. anrl ar.e lilil_,le tcr l_.c:c1 asirlc l0 that extent. 30. In view olthe above facts and circumstances and the judgment ret'ened to supra, the deactivation of the DINs ol the petitioners for alleged violations under Section 1 64 of the Act, cannot be sustained, Generai, -. I I ,.,r tit.r I'rri-LtLring rcas(rt'tS. thc illtPLrgncd ()t.(ief) lr tlre rrril It.ritions ro rl)c cxtcnt o1' disclualiiyin.-r tltc l.clrlii)ne r. Lnclcr Sccri(rn l{r4(2)(a) oi' thc Act rnd cie :rclir,rlioir Lrl rhcil I)lNs. ale set aside. and tl.rc 2nd lespondent is dilected lo activate the DINs ol the petitioners. euabling theln to iunction as Directors other than in strike oll courpanies. i2, It is made clear that this order n,ill not preclude the 2nd lespondent lrom taking appropriate aotion in eccordance rr'ith ias lbr violations as envisaged under Section )61(2) ol the Act. giving the said provision prL)speclivc e l'lict ll1)nt 01.01.2011 and fbr necessar) lr.li(rl iiciLin5l I)l in clrsc ol'r,ioiatirrns ol'I{ulc I I ol'thc I{ Lr 1c: ll. lt i. rLlsrr nraclc clcar that if the petitioncls alc lrLr.r'reriil i.r llre rreliorr r,i Llrc rcsPLrntlcnts in striliir,r irii' tlr,.'i1 iL,1rpilrvt: 1:r(lar eali()p llS rrl'tlrc . e1. llrc rrc i1t lil-.lln t,, lrrlrli lLlleirriilire rcrlcdr under SccLion l5l ot ll r r1 ' .. ll tirc uIrt l)clilir)ns a|c accordingll allor'ied Lo the extent in d icated abo e.'' 5. In view of the salne, and for the reasons alike, the present Writ Petition is also allowed mutatis mutandis, in terms of the common order dated 18.07.2019 passed in W.P.No.5422 of 2018 and batch. No ol'der as to costs. ivliscellaneor.rs petitions pending , il anr', shall star-rd closed SD/- I.NAGALAKSHIVlI ASSISTANT RE ISTRA //TRUE COPY// SECTION OFFICER To, 2 3 4 5 Unron of India. lv'1inistry of Corporate Affairs, Shastri Bhawan, Dr' Raiender Prasad Road. New Delhi- '1 10001 The Registrar of Companies, Telangana State., 2nd Floor, Corporate Bhawan' GSI Po;t. Tattrannaram Nagole. Bandlaguda Hyderabad - 500 068 One CC to l ,4/s. Angothu Nehru Advocate [OPUC] - One CC to Sri Namivarapu Raleshwar Rao, Asst Solicitor General Advocate loPUCl Two CD Copies (Along wiih a copy of the order, dt: 18,07.2019 in W.P. No.5422l2018 and batch) )< {< s|.1 HIGH COURT DATED:0310212021 ORDER WP.No.2256 of 2021 ALLOWING THE WP WITHOUT COSTS t : ll FEBwt * * e f-0 TC i k 14 E H t o o . > 1}{y THE HON'BLE SRI ]USTICE A.RAJASH EKER REDDY W,P,NOs.5422, 121a4. t3520. L37A3, 13855, 1416 6. 24051.30993. AND 40953 0F 2o1a. 5547, 5582.5669, 5647,57 as. 6047 . 6047 , 4 4 4 6753 6 5 7 8 70t4 7073 7LO 5- 7432 -r4s4. -rs'r). 7ss . 7732. 7765. 7 -1F 9, 7 R 24 7g7A 8111. 8223. 8s86. 8s90. 9333, 9340, 9381, 9468. 9563, 9584, 9623. 9726,9737, 100s8, 10099. 11208, 11223. 11239, 11263. 11889, 1 0?6. 't)o4rl_ 12()69. 121()4, 1 1 1 1991 2o1a. 1 L2144 ) a6_ 1 21 q4- 1 1 2oo- 122oI t2215 )) 1-1 . 1))4a. 1)26rl.1226 ) 122R8 1 1 )44) _ '| 23