Madras High Court
Ganapathy Sivaprakash vs Union Of India on 16 June, 2022
W.P.Nos.15021 and 15025 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 16.06.2022
CORAM
THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE
W.P.Nos.15021 and 15025 of 2022
and
WMP Nos.14240, 14241, 14244 and 14245 of 2022
Ganapathy Sivaprakash ..Petitioner in WP No.15021 of 2022
Babu Govinda Rajulu ..Petitioner in WP No.15025 of 2022
-Vs-
1.Union of India
Represented by its
Ministry of Corporate Affairs,
Shastri Bhawan, Dr.Rajendra Prasad Road,
New Delhi-110001.
2.Registrar of Companies,
Tamil Nadu, Chennai
Block No.6, B Wing 2nd Floor,
Shasthri Bhavan,
26, Haddows Road,
Chennai – 600006 ... Respondents in both the writ petitions
... Respondents
Prayer in W.P.No.15021 of 2022:
Writ Petition filed under Article 226 of the Constitution of India to
issue Writ of Certiorarifed Mandamus to call for the records of the 2nd
respondent relating to impugned orders dated 08.09.2017, read with
impugned updated list dated 01.11.2017 and the impugned order dated
https://www.mhc.tn.gov.in/judis
17.12.2018 uploaded and hosted on the website of the 1st respondent on
W.P.Nos.15021 and 15025 of 2022
18.12.2018 insofar as the petitioner is concerned and quash the status
“Disqualified under section 164(2) against his Director Identification
Number (DIN No.05298342) as illegal, arbitrary and devoid of merits and
consequently direct the respondents herein to permit the petitioner to get
reappointed as Director of any Company or appointed as Director in any
Company or to act as Director in any Active Company without any
hindrance.
Prayer in W.P.No.15025 of 2022:
Writ Petition filed under Article 226 of the Constitution of India to
issue Writ of Certiorarifed Mandamus to call for the records of the 2nd
respondent relating to impugned orders dated 17.12.2018 uploaded and
hosted on the website of the 1st respondent, insofar as the petitioner herein
is concerned, quash the status “Disqualified under section 164(2) against
his Director Identification Number (DIN No.6523606) as illegal, arbitrary
and devoid of merits and consequently direct the respondents herein to
permit the petitioner to get reappointed as Director of any Company or
appointed as Director in any Company or to act as Director in any Active
Company without any hindrance.
For Petitioners : Mr.Salai Varun
For Respondents : Mr.R.Sidharth
Central Govt.Standing Counsel
https://www.mhc.tn.gov.in/judis
W.P.Nos.15021 and 15025 of 2022
COMMON ORDER
Mr.R.Sidharth, learned Central Government Standing Counsel
accepts notice on behalf of the respondents. By consent of both the parties,
the writ petitions are taken up for final disposal at the admission stage
itself.
2. These writ petitions have been filed challenging the
disqualification orders passed under Section 164(2) of the Companies Act,
2013.
3. The respective petitioners have been disqualified to act as
Directors under the impugned orders. It is well settled by the decision
rendered by the Division Bench of this Court in Meetgelaveetil Kaitheri
Mudalidharan vs Union of India & another dated 09.10.2020 in
W.A.No.569, 718, 720, 721, 841 and 842 of 2020 that disqualification
order disqualifying any person as a Director without issuance of any prior
notice and without conducting an enquiry is bad in law.
4. Since the procedure as prescribed under the Companies Act, 2013
has not been followed before passing the impugned orders disqualifying the
respective petitioners as Directors, the impugned order will have to be
necessarily quashed and the writ petitions will have to be allowed. In the
instant cases also, the respective petitioners were not served with any show
https://www.mhc.tn.gov.in/judis
cause notice and no enquiry was also held before disqualifying them as
W.P.Nos.15021 and 15025 of 2022
Directors. While deciding a similar issue, I had also followed the
aforementioned Division Bench judgment and allowed the writ petition on
24.03.2021 in W.P.No.7677/2021.
4. For the forgoing reasons, the impugned orders dated 08.09.2017,
01.11.2017, 17.12.2018 and 18.12.2018 insofar as the petitioners are
concerned are hereby quashed and the Writ Petitions are allowed. However,
it is made clear that it is open to the respondents to initiate fresh action with
regard to the respective petitioners' disqualification subject to holding an
enquiry and to decide the question of attribution of default committed by
them. No costs. Consequently connected miscellaneous petitions are
closed.
16.06.2022
Speaking/Non-speaking order
Index: Yes/No
vsi
https://www.mhc.tn.gov.in/judis
W.P.Nos.15021 and 15025 of 2022
To
1.Union of India
Represented by its
Ministry of Corporate Affairs,
Shastri Bhawan, Dr.Rajendra Prasad Road,
New Delhi-110001.
2.Registrar of Companies,
Tamil Nadu, Chennai
Block No.6, B Wing 2nd Floor,
Shasthri Bhavan,
26, Haddows Road,
Chennai – 600006
https://www.mhc.tn.gov.in/judis
W.P.Nos.15021 and 15025 of 2022
ABDUL QUDDHOSE,J.
Vsi
W.P.Nos.15021 and 15025 of 2022
16.06.2022
https://www.mhc.tn.gov.in/judis
