Brijsons Hotel Private Limited & Ors Vs Union of India & Ors (Calcutta High Court)
The Calcutta High Court, in the case of Brijsons Hotel Private Limited & Ors vs Union of India & Ors, has directed the Registrar of Companies (ROC) to make a decision on the removal of a director, even while the matter is pending before the National Company Law Tribunal (NCLT).
The petitioners, including Brijsons Hotel Private Limited and its directors, had filed a writ petition alleging that the ROC was not updating the company’s records to reflect the removal of a former director. The ROC had communicated that since the director’s removal was a sub-judice matter before the NCLT, no action could be taken. The former director, who was a private respondent in the case, argued that his removal was improper and was under legal challenge. He noted that the petitioners had already been injuncted from taking possession of the company’s assets.
The court examined Rule 11 of the Companies (The Registration Offices and Fees) Rules, 2014, which outlines the procedure for the vacation or removal of directors. This rule requires the Registrar to verify documents and, if a violation of the Companies Act is found, to refer the matter to the Regional Director. The Regional Director is then tasked with conducting an inquiry and making a decision within 90 days.
