Case Law Details
Navneet Sahay Verma and another Vs. Registrar of Companies and another (Bombay High Court)
The Petitioners, because of their disqualification, cannot apply under the Companies Fresh Start Scheme in respect of their companies. This Scheme is to end on 30 September 2020. They, therefore, seek a direction that they may be permitted to apply under the Scheme and for the said purpose their DIN should be activated.
The petitioners raised a doubt as to the applicability of Section 167 (3) submitting that if the disqualified directors of the company were also promoters and if there are no other directors, they may not be entitled to nominate a director. The learned Additional Solicitor General submitted that the provision refers to the promoter and director separately. He submitted that if a person is acting in the capacity of director cum promoter and is disqualified as a director, for the purpose of this provision, he can continue to act in the capacity of a promoter to nominate any other person as a director. The learned counsel for the Petitioner in WP-LD-VC- 345/2020 pointed out that the Petitioner has, in fact, applied under section 167(3) of the Companies Act as a promoter and has nominated his son as director. The learned Counsel for the petitioner/s in the other Petitions submitted that they would follow the course of action indicated by the learned Additional Solicitor General. As regards Writ Petition (L) No.2828/2019 is concerned, the theory of discord between the directors is too general to prove it by evidence. Nothing stops this Petitioner from persuading the other directors or the promoter from nominating any other person as a director to apply under the Scheme. We have to also keep in mind the delay and the stage at which the Petitioner has approached this Court regarding the Scheme.
Since the position has been clarified by the learned Additional Solicitor General as above, that in the capacity of promoter the Petitioner/s can nominate any person as a director and follow section 167(3) of the Act to apply under the Scheme, it is not necessary for us to issue any further directions. This course of action is, therefore, available to the Petitioner/s regarding the Scheme.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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