{"id":1050,"date":"2019-07-26T10:19:17","date_gmt":"2019-07-26T10:19:17","guid":{"rendered":"https:\/\/lawyerinc.net\/learning\/?p=1050"},"modified":"2020-04-11T17:36:51","modified_gmt":"2020-04-11T12:06:51","slug":"removal-of-director-disqualification-without-revival-of-company","status":"publish","type":"post","link":"https:\/\/lawyerinc.net\/learning\/removal-of-director-disqualification-without-revival-of-company\/","title":{"rendered":"How To Remove Director Disqualification Without Revival of Company"},"content":{"rendered":"\n<p>There was a major wobbling in the industry when around 3 lakhs of Directors were disqualified by Registrar of Companies (ROC) under Section 164(2) and Section 167(1) (a) of the Companies Act, 2013. Additionally, around 2.30 lakh companies were struck off by ROC branding them as \u2018Shell Companies\u2019. So what was the radical reasoning behind them, it was just on account of non-compliance by the companies or was there any other reasoning behind that and is there any way to <a href=\"https:\/\/lawyerinc.net\/in\/removal-directors-disqualification\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Remove Director Disqualification<\/a>?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyerinc.net\/learning\/removal-of-director-disqualification-without-revival-of-company\/#Important_provision_of_companies_acts_for_Director_Disqualification_and_Strike_up_of_Companies\" title=\"Important provision of companies acts for\nDirector Disqualification and Strike up of Companies:\">Important provision of companies acts for\nDirector Disqualification and Strike up of Companies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyerinc.net\/learning\/removal-of-director-disqualification-without-revival-of-company\/#What_is_procedure_for_DIN_Reactivation_without_Reviving_Struck_Up_Company\" title=\"What is procedure for DIN Reactivation without Reviving Struck Up Company?\">What is procedure for DIN Reactivation without Reviving Struck Up Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyerinc.net\/learning\/removal-of-director-disqualification-without-revival-of-company\/#Sequential_procedure_for_DIN_Reactivation_or_Director_Disqualification_Removal\" title=\"Sequential procedure for DIN Reactivation or Director Disqualification Removal:\">Sequential procedure for DIN Reactivation or Director Disqualification Removal:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawyerinc.net\/learning\/removal-of-director-disqualification-without-revival-of-company\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_provision_of_companies_acts_for_Director_Disqualification_and_Strike_up_of_Companies\"><\/span><strong>Important provision of companies acts for\nDirector Disqualification and Strike up of Companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before proceeding further lets understand apropos provisions of Director Disqualification and <a href=\"https:\/\/lawyerinc.net\/in\/revival-of-struck-off-companies\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Strike up of Companies (opens in a new tab)\">Strike up of Companies<\/a>.<\/p>\n\n\n\n<p><em>\u201c164 (2) (a) No person who is or has been a\ndirector of a company which has not filed financial statements or annual\nreturns for any continuous period of three financial years; declared and such\nfailure to pay or redeem continues for one year or more, shall be eligible to\nbe re-appointed as a director of that company or appointed in other company for\na period of five years from the date on which the said company fails to do so.<\/em><\/p>\n\n\n\n<p><em>248.&nbsp;Power of\nRegistrar to remove name of company from register of companies<\/em><\/p>\n\n\n\n<p><em>(1) Where the Registrar has\nreasonable cause to believe that\u2014<\/em><\/p>\n\n\n\n<p><em>(a) a company has failed to\ncommence its business within one year of its<\/em><\/p>\n\n\n\n<p><em>incorporation;<\/em><\/p>\n\n\n\n<p><em>(c) a company is not\ncarrying on any business or operation for a period of two<\/em><\/p>\n\n\n\n<p><em>immediately preceding\nfinancial years and has not made any application within such period for\nobtaining the status of a dormant company under section 455,\u201d<\/em><\/p>\n\n\n\n<p>Due to\nforgoing provisions, ROC disqualified directors of the companies in two criteria:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>The companies which were still active and viable\nbut failed to file annual compliances and annual returns for last 3 years;<\/li><li>The companies which were incorporated but there\nwas no commencement of business within 1 year of its incorporation;<\/li><\/ol>\n\n\n\n<p>In the first category, as the company was still operational, and management was willing to revive the company, so they had option to approach National Company Law Tribunals (NCLT) for Revival of the Struck off company under Section 252 of <a href=\"http:\/\/www.mca.gov.in\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">the Companies Act, 2013<\/a>, simultaneously approaching Hon\u2019ble High Court for Removal of Director Disqualification under Article 226 of the Constitution of India. However, what about the companies in second category, where there was no commencement of business since incorporation and even management is not willing to Revive the company and do the annual compliances. Here the main issue is for directors who were holding directorship in multiple companies and one of the said companies failed to comply with prescribed provisions as imposed by the Companies Act, 2013.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/lawyerinc.net\/in\/removal-directors-disqualification\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"728\" height=\"90\" src=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Remove-Director-Disqualification-4.jpg\" alt=\"Contact us for removal of director disqualification without revival of company\" class=\"wp-image-1062\" srcset=\"https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Remove-Director-Disqualification-4.jpg 728w, https:\/\/lawyerinc.net\/learning\/wp-content\/uploads\/2019\/07\/Remove-Director-Disqualification-4-300x37.jpg 300w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_procedure_for_DIN_Reactivation_without_Reviving_Struck_Up_Company\"><\/span><strong>What is procedure for DIN Reactivation without Reviving Struck Up Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Wherefore, the disqualified directors who\nwere just inclined towards removing director\u2019s disqualification without\nreviving the name of the company with ROC and not amenable to file statutory\ndocuments and do annual compliances, Writ Petition in respective High Court is\na way out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sequential_procedure_for_DIN_Reactivation_or_Director_Disqualification_Removal\"><\/span><strong>Sequential procedure for DIN Reactivation or Director Disqualification Removal:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here is the step by step procedure for Director Disqualification removal\nwithout reviving the name of the struck off company:<\/p>\n\n\n\n<p>Step-1: Drafting and filing of Writ Petition before the respective High\nCourt where strike up companies Registered Office is present under Article 226\nof the Constitution of India. This procedure takes 3-4 working days from\ndrafting till filing of the petition;<\/p>\n\n\n\n<p>Step-2: Listing for first date of hearing;<\/p>\n\n\n\n<p>Step-3: Court may ask ROC to file Report\/ reply to the respective Writ\npetition;<\/p>\n\n\n\n<p>Step-4: Getting of Stay Order from respective High Court;<\/p>\n\n\n\n<p>Step-5: Filing of application with ROC for reactivation of DIN;<\/p>\n\n\n\n<p>Step-6: Reactivation of DIN;<\/p>\n\n\n\n<p>Step-7: Do the required compliances and payment of penalty amount as\nimposed by Court\/ROC;<\/p>\n\n\n\n<p>Step-8: Getting of final order from Hon\u2019ble High Court<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion: <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hon\u2019ble High Court via its orders given relief to innumerable directors\nin various states by giving stay to the notification of ROC in which names of\ndirectors were disqualified, subsequently directing ROC to reactivate the DIN\nof directors. However, this stay order of High court has given certain easement\nto disqualified directors; still the ultimate decision is to be made by Hon\u2019ble\nSupreme Court. <\/p>\n\n\n\n<p>If you have any other query in regards to <a rel=\"noreferrer noopener\" aria-label=\"Director Disqualification (opens in a new tab)\" href=\"https:\/\/lawyerinc.net\/in\/removal-directors-disqualification\" target=\"_blank\">Director Disqualification<\/a>, please feel free to contact at <a href=\"https:\/\/lawyerinc.net\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"LawyerINC (opens in a new tab)\">LawyerINC<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There was a major wobbling in the industry when around 3 lakhs of Directors were disqualified by Registrar of Companies (ROC) under Section 164(2) and Section 167(1) (a) of the Companies Act, 2013. Additionally, around 2.30 lakh companies were struck off by ROC branding them as \u2018Shell Companies\u2019. So what was the radical reasoning behind [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-1050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-din"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Remove Director Disqualification Without Revival of Company<\/title>\n<meta name=\"description\" content=\"Know the procedure of removal of Director Disqualification if the management is unwilling to revive the Struck Off company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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