Bombay HC provides no interim relief for disqualified directors

On September 2017, the MCA had disqualified over two lakh directors by applying section 164 (2) of the Companies Act, 2013.




In a setback to several directors of private and public companies, the Bombay High Court refused interim relief on batch of pleas challenging their disqualification by the Ministry of Corporate Affairs (MCA). On September 2017, the MCA had disqualified over two lakh directors by applying section 164 (2) of the Companies Act, 2013. Section 164 (2) allows the MCA to disqualify a director if the company does not file financial statements or annual returns for a continuous period of three financial years. Aggrieved directors had moved HC in 2018.

The HC prima facie held that it does not think the September 2017 circular was inconsistent with provisions of company law of 2013. A division bench of justices S C Dharmadhikari and R I Chagla passed an order on February 7 in interim applications filed by directors seeking stay on the MCA’s move debarring directors across India.

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