Disqualification of director u/s 164(2) for non-submission of return of dissolved company is unsustainable

Eanokaran Anthony Tony Vs Union of India (Kerala High Court)

Held that disqualification of the director under section 164(2) of the Companies Act, 2013 for failure to submit returns with respect to a dissolved company is untenable in law.

Facts-

Petitioner was the Director of a company named Margin Free Kuries Private Ltd. As the company has become defunct, the petitioner decided to strike off and dissolve the company, as provided in Section 560 of the Companies Act, 1956. In accordance with the guidelines for Fast Track Exit mode, the petitioner submitted Ext. P3, requesting to strike off the company from the Register of Companies.

In response, ROC issued a notice intimating the petitioner that, the company’s name will be struck off from the register and the Company will be dissolved, at the expiration of 30 days from the date of the notice. Contrary to the information passed on, in the website of the Ministry of Cooperate Affairs, the status of the company was shown as ‘under process of striking off’.

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