Delhi High Court issues notice to MCA on the grievance to petitioner/directors who doesn’t want to continue with a stuck off company

Two directors aggrieved by the disqualification list published  by Ministry  of Corporate Affair approached the Delhi Superior courtroom with an additional realted problem that what would  happen to director  who don’t  want to continue  with their  directorship  in the disqualified companies ( as a effect  of which) their DIN got  cancelled.

It is appropriate to point out that  before a series of petitions have been brought before  the Hon’ble  Superior Courts raking up the  problem of arbitrary and illegal disqualification of  the director  vide the impugned list revealed by the Ministry of Corporate affairs disqualifying the director and cancelling their DIN Selection with Immediate impact in consonance with the Portion 164 of the Businesses Act, 2013.,

The Hon’ble Superior courtroom of Hyderabad, Madras and Delhi have now admitted these kinds of petitions wherein legality of impugned list is less than challgene and have directed Union of India  to file response to these kinds of petitions.

In the in the meantime the  MCA on 29.12.2017 arrived up with a plan specifically Condonation of Hold off Scheme ,2018 whereby relief was granted to a lot of disqualified directors by making it possible for them to file the requisite documents and accounts with ROC before 31.03.2018 in terms of which numerous petition had been dismissed as withdrawn.

On the other hand,  in the existing Writ petition of the directors before the Hon’ble  Superior courtroom of Delhi the Grievances of the petitioners was slightly various i.e :


  1. The petitioner argued that they were  not covered by the COD plan released by the Ministry as the stated plan exclude companies which have been trapped off/  and the firm (Shamoga Valley Resorts Private Limited ) for whose default the petitioners had been disqualified was also trapped off firm therefore  could not be covered  less than the plan.

The appropriate protion of the Scheme reads, inter alia,  as less than:

“3. Applicability: – This plan is applicable to all defaulting companies (other than the companies which have been trapped off/ whose names have been eradicated from the sign-up of companies less than portion 248(5) of the Act). A defaulting firm is permitted to file its overdue documents which had been owing for submitting until 30.06.2017 in accordance with the provisions of this Scheme.”


More petitioner argued that there had been disputes in between the petitioners and other director  of Shamoga Valley Resorts Private Limited and consequently they really do not want to keep on with the stated firm as directors and they are clueless as ministry  have not issued any direction  in this regard.

Mr. shukla Counsel for the respondent (Union of India), who appeared on progress observe submitted  that he would have to just take guidance in the subject given that the petitioners do not want to keep on their engagement with SVRL

The Hon’ble Superior Court docket of Delhi was pleased to Challenge observe and direct  Mr. Shukla to file a counter affidavit on behalf of the respondents though keeping the procedure of the impugned list  insofar as it incorporates the title of the petitioners until 31.3.2018 expecting by that time  Division Bench may  come to a decision the destiny of the  impugned list in the comparable petition pending before  it.



Syed Asif Iqbal

Advocate, Superior Court docket of Delhi

Apply in the field  of Contracts, Land acquisition, Buyer &  Arbitration matters

Also Co-founder, a technological innovation and Artificial Intelligence driven firm producing lawful career less complicated and ensuring accessibility to justice for all.

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