HC directs MCA toExplain removal of companies from ROC

HC directs MCA toExplain removal of companies from ROC

HC has directed MCA toExplain removal of companies from ROC in its order dated25.05.2018. The ministry, through circulars issued on September 6 and 12, 2017, removed over 1 lakh companies that had failed to file their annual returns and other documents with the register of companies in order to crackdown shell entities. This writ petition has been instituted against the notice dated 6th September, 2017 and 12th September, 2017 issued under Section 164(2)(a) of the Companies Act, 2013 to the Directors[here after also referred aspetitioners] of the Companies. The director of these companies were held disqualified for the reason that there was default in submitting returns which were statutorily required to be filed with the Registrar of Companies with regard to the affairs of the Company in question, for a continuous period of three financial years. It has been contended that the action of the Registrar of Companies in disqualifying the petitioners under Section 164(2)(a) as well as the striking off the name of the company under Section 248 of the Companies Act, 2013 are both in gross violation of the principles of natural justice. The DIN numbers of these petitioners have been revived for the time being so that they can act in capacity of director in their other companies. The Ministry has beenasked to produce the original records24th July, 2018. Click here to read the complete Order

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