w w w . L a w y e r S e r v i c e s . i n



Thirunavukkarasu Ragunathan, Tamil Nadu & Another v/s Union of India, Represented by Its Secretary, Ministry of Finance, Department of Revenue, New Delhi & Others


Company & Directors' Information:- L & T FINANCE LIMITED [Amalgamated] CIN = U65990MH1994PLC083147

Company & Directors' Information:- S P FINANCE PRIVATE LIMITED [Active] CIN = U65990MH1979PTC021790

Company & Directors' Information:- V L S FINANCE LIMITED [Active] CIN = L65910DL1986PLC023129

Company & Directors' Information:- L R N FINANCE LIMITED [Active] CIN = U65921TN1992PLC089288

Company & Directors' Information:- S M FINANCE LTD [Active] CIN = L65999TG1984PLC004526

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = L65999WB1993PLC058107

Company & Directors' Information:- B R D FINANCE LIMITED [Active] CIN = U65910KL1995PLC009430

Company & Directors' Information:- T C I FINANCE LIMITED [Active] CIN = U65920MH1973PLC017042

Company & Directors' Information:- A. V. B. FINANCE PRIVATE LIMITED. [Active] CIN = U65993DL1992PTC049818

Company & Directors' Information:- S M L FINANCE LIMITED [Active] CIN = U65910KL1996PLC010648

Company & Directors' Information:- S B FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008268

Company & Directors' Information:- INDIA FINANCE LTD. [Active] CIN = L65110WB1984PLC050214

Company & Directors' Information:- TAMIL NADU FINANCE LIMITED [Not available for efiling] CIN = L08031TZ1980PLC000972

Company & Directors' Information:- J J FINANCE CORPORATION LTD [Active] CIN = L65921WB1982PLC035092

Company & Directors' Information:- G V S FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008269

Company & Directors' Information:- G T P FINANCE LIMITED [Active] CIN = U65921TZ1991PLC003149

Company & Directors' Information:- S R K FINANCE PRIVATE LIMITED [Active] CIN = U65910UP1994PTC016038

Company & Directors' Information:- R N FINANCE LIMITED [Active] CIN = U74899DL1988PLC034289

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = U65999WB1993PLC058107

Company & Directors' Information:- C K G FINANCE PRIVATE LIMITED [Active] CIN = U65910KL1996PTC010147

Company & Directors' Information:- L N FINANCE LTD [Active] CIN = U65923WB1991PLC052876

Company & Directors' Information:- R K FINANCE LTD [Active] CIN = L65921WB1983PLC035896

Company & Directors' Information:- V P C L FINANCE LIMITED [Active] CIN = U65920TG1996PLC023172

Company & Directors' Information:- J S M FINANCE PVT LTD [Active] CIN = U74140MP1995PTC009542

Company & Directors' Information:- I & D FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1991PTC021369

Company & Directors' Information:- UNION FINANCE LIMITED [Strike Off] CIN = U65910GJ1994PLC023717

Company & Directors' Information:- L N FINANCE PVT LTD [Active] CIN = U65929AS1992PTC003766

Company & Directors' Information:- N B A FINANCE LIMITED [Strike Off] CIN = U74899DL1993PLC052393

Company & Directors' Information:- T P D FINANCE LIMITED [Strike Off] CIN = U67120RJ1994PLC008051

Company & Directors' Information:- R G L FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015809

Company & Directors' Information:- S K B FINANCE LIMITED [Amalgamated] CIN = U65999WB1996PLC082317

Company & Directors' Information:- J V FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC067873

Company & Directors' Information:- L C J FINANCE PVT. LTD. [Active] CIN = U65921WB1995PTC068809

Company & Directors' Information:- H L T FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1996PTC078128

Company & Directors' Information:- R N C P FINANCE LTD. [Dissolved] CIN = U67120WB1995PLC072339

Company & Directors' Information:- T T FINANCE LIMITED [Amalgamated] CIN = U67120DL1986PLC023168

Company & Directors' Information:- M M V R FINANCE LIMITED [Active] CIN = U65921TZ1997PLC007705

Company & Directors' Information:- D B FINANCE PRIVATE LIMITED [Active] CIN = U65191TN1989PTC016705

Company & Directors' Information:- C H P FINANCE PVT LTD [Active] CIN = U65921PB1992PTC012788

Company & Directors' Information:- S L B P FINANCE PRIVATE LIMITED [Active] CIN = U74899DL1990PTC041694

Company & Directors' Information:- R S FINANCE PVT LTD [Active] CIN = U65191WB1988PTC044144

Company & Directors' Information:- I C FINANCE PRIVATE LIMITED [Active] CIN = U65921UP1989PTC011236

Company & Directors' Information:- V K FINANCE PVT LTD [Strike Off] CIN = U67120WB1991PTC052140

Company & Directors' Information:- C AND N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1998PTC094290

Company & Directors' Information:- C D R FINANCE LIMITED [Strike Off] CIN = U65910TG1995PLC022237

Company & Directors' Information:- J R FINANCE LIMITED [Active] CIN = U65921PB1996PLC017699

Company & Directors' Information:- I C S FINANCE LIMITED [Strike Off] CIN = U65921TZ1987PLC001991

Company & Directors' Information:- D D S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910DL1996PTC076165

Company & Directors' Information:- K V L FINANCE LIMITED [Strike Off] CIN = U65191TN1989PLC016715

Company & Directors' Information:- D A S FINANCE PVT LIMITED [Strike Off] CIN = U65921PB1993PTC012888

Company & Directors' Information:- U B FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1992PTC051300

Company & Directors' Information:- V L G FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910AP1997PTC027952

Company & Directors' Information:- E M S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921TZ1986PTC001789

Company & Directors' Information:- T D M FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U65923KL1997PTC011601

Company & Directors' Information:- S. F. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018702

Company & Directors' Information:- D S L FINANCE PRIVATE LIMITED [Active] CIN = U65921TG1996PTC023898

Company & Directors' Information:- R D P FINANCE PRIVATE LIMITED [Active] CIN = U65929DL1997PTC089092

Company & Directors' Information:- S R K C FINANCE LIMITED [Amalgamated] CIN = U65999TZ1989PLC002445

Company & Directors' Information:- R K N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC038377

Company & Directors' Information:- H A FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027064

Company & Directors' Information:- V V A FINANCE LTD [Active] CIN = U65993WB1984PLC037171

Company & Directors' Information:- Y B FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921CH1996PTC017745

Company & Directors' Information:- D G L FINANCE LTD [Strike Off] CIN = U67120TG1993PLC015604

Company & Directors' Information:- M S R FINANCE PVT LTD [Strike Off] CIN = U65191TN1989PTC016789

Company & Directors' Information:- S S P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1987PTC014526

Company & Directors' Information:- C R N FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1994PTC062802

Company & Directors' Information:- I FINANCE COMPANY LIMITED [Active] CIN = U67110DL2011PLC212268

Company & Directors' Information:- H AND Z FINANCE PRIVATE LIMITED [Active] CIN = U67190MH1995PTC093153

Company & Directors' Information:- Y AND K FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC019837

Company & Directors' Information:- S L P FINANCE PRIVATE LTD. [Strike Off] CIN = U65923DL1985PTC021970

Company & Directors' Information:- V M FINANCE LIMITED [Strike Off] CIN = U65910PB1996PLC018339

Company & Directors' Information:- D S K FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010317

Company & Directors' Information:- G B V FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65110UP1988PTC010219

Company & Directors' Information:- B H FINANCE PRIVATE LIMITED [Strike Off] CIN = U65922KA1995PTC018390

Company & Directors' Information:- M .R .S . FINANCE LIMITED [Strike Off] CIN = U65929DL1995PLC067184

Company & Directors' Information:- H D FINANCE LTD [Strike Off] CIN = U67120DL1986PLC023675

Company & Directors' Information:- P R K FINANCE P LTD [Strike Off] CIN = U65191TN1995PTC033478

Company & Directors' Information:- T AND C FINANCE LIMITED [Strike Off] CIN = U67120RJ1996PLC012576

Company & Directors' Information:- W S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65192UP1996PTC020243

Company & Directors' Information:- S A C FINANCE COMPANY PVT LTD [Active] CIN = U65999WB1985PTC039002

Company & Directors' Information:- C C FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC037805

Company & Directors' Information:- S R B FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010045

Company & Directors' Information:- P V FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027270

Company & Directors' Information:- R V S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65990KA1995PTC018436

Company & Directors' Information:- P AND B FINANCE PVT LTD [Strike Off] CIN = U99999MH1986PTC038841

Company & Directors' Information:- B B P FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018183

Company & Directors' Information:- NEW INDIA FINANCE LTD. [Strike Off] CIN = U65999WB1991PLC051652

Company & Directors' Information:- A E FINANCE PRIVATE LIMITED [Active] CIN = U65999TZ1990PTC002905

Company & Directors' Information:- L R FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65910UP1988PTC009758

Company & Directors' Information:- S B M FINANCE LIMITED [Strike Off] CIN = U65921PB1994PLC014374

Company & Directors' Information:- T A S FINANCE PVT LTD [Strike Off] CIN = U65191TN1990PTC018654

Company & Directors' Information:- D AND O FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054788

Company & Directors' Information:- H R P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921PB1995PTC015715

Company & Directors' Information:- P T R FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1989PTC016795

Company & Directors' Information:- B & S FINANCE PVT LTD [Strike Off] CIN = U65191TN1988PTC015491

Company & Directors' Information:- H S B FINANCE PVT LTD [Strike Off] CIN = U67120RJ1996PTC012119

Company & Directors' Information:- NEW K K FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921UP1974PTC003887

Company & Directors' Information:- M. J. S. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1971PTC003049

Company & Directors' Information:- A R FINANCE PVT LTD [Strike Off] CIN = U65921PB1989PTC009778

Company & Directors' Information:- K G FINANCE LIMITED [Strike Off] CIN = U65910TZ1982PLC001219

Company & Directors' Information:- S AND Z FINANCE PRIVATE LIMITED [Strike Off] CIN = U65923PN1997PTC106520

Company & Directors' Information:- H S N FINANCE PVT LTD [Strike Off] CIN = U67120PB1993PTC013900

Company & Directors' Information:- G N FINANCE PVT LTD [Strike Off] CIN = U65990MH1981PTC024294

Company & Directors' Information:- C S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910GJ1987PTC009799

    WP(C). No. 6863 of 2019 (G)

    Decided On, 28 September 2020

    At, High Court of Kerala

    By, THE HONOURABLE MR. JUSTICE N. NAGARESH

    For the Petitioners: Navod Prasannan Pattali, K.V. Krishnakumar, Advocates. For the Respondents: R1-R4, Tulasi Panicker, CGC., R7, C.P. Peethambaran, N.S. Mohandas, R6, M. Gopoikrishnan Nambiar, Advocates.



Judgment Text

1. The petitioners, who are Directors of an Incorporated Company, are before this Court seeking to quash Exts.P4 and P5 and to restore the Digital Signature Certificates and the Director Identification Numbers of the petitioners.2. The petitioners were Directors of M/s.Chaya Industries Limited, M/s.Sunvis Systems Private Limited and M/s.Evcel Electrek Private Limited. It is the case of the petitioners that the business of M/s. Chaya Industries Limited were officially closed on 15.01.2008 due to labour unrest. The industry became sick and the 6th and 7th respondentBanks took possession of the land, plant and machinery. Securitisation proceedings were also initiated.3. The petitioners have been filing statutory returns with the Registrar of Companies till 2013. After 2014, the assets of M/s.Chaya Industries were taken over by the banks and part of the assets were sold for recovery of dues. The petitioners therefore could not file statutory returns in the absence of sufficient data.4. In the meanwhile, the Government of India issued Notification No.SO 902(E) dated 26.03.2014 and notified Section 164 of the Companies Act, 2013. Thereupon, the petitioners were disqualified from operating as Directors for a cumulative period from 01.11.2017 to 31.10.2022 on the ground that M/s.Chaya Industries Limited failed to file financial statements and annual returns for the financial years 2014-2015, 2015-2016 and 2016-2017. Exts.P4 and P5 are the web page prints from the website of the 2nd and 3rd respondent-Registrar of Companies.5. The petitioners filed the writ petition stating that they could not make any uploading relating to financial statements and annual returns since they had no access to the exact details of sale of assets effected by the banks. Filing of financial statements and annual returns therefore was an impossibility. Due to the disqualification of the petitioners as Directors of M/s.Chaya Industries Limited, the petitioners are not able to function as Directors of the other two companies also.6. When this writ petition came up for hearing today, the counsel for the petitioners brought to the notice of this Court General Circular No.12/2020 dated 30.03.2020 of the Assistant Director (Policy), Government of India, Ministry of Corporate Affairs relating to Companies Fresh Start Scheme, 2020. Paragraph 4 of the said Circular reads as follows:-“4. In order to give such an opportunity to the defaulting companies and to enable them to file the belated documents in the MCA-21 registry, the Central Government in exercise of powers conferred under section 460 read with section 403 of the Companies Act, 2013 has decided to introduce a Scheme namely “Companies Fresh Start Scheme, 2020 (CFSS-2020) condoning the delay in filing the above mentioned documents with the Registrar, in so far as it relates to charging of additional fees, and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings. Only normal fees for filing of documents in the MCA-21 registry will be payable in such case during the currency of CFSS2020 as per the provisions of section 403 read with Companies (Registration Offices and Fee) Rules, 2014 and section 460 of the Act.”Learned counsel for the petitioners pointed out that as per paragraph 6(ix) of the said Circular, the Scheme shall not apply only to the following companies:-“a. to companies against which action for final notice for striking off the name u/s 248 of the Act (previously section 560 of Companies Act, 1956) has already been initiated by the Designated authority;b. where any application has already been filed by the companies for action of striking off the name of the company from the register of companies;c. to companies which have amalgamated under a scheme of arrangement or compromise under the Act;d. where applications have already been filed for obtaining Dormant Status under section 455 of the Act before this Scheme;e. to vanishing companies;f. Where any increase in authorized capital is involved (Form SH-7) and also charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9).”The company in question does not fall under any of the said categories. Therefore, the petitioners' Company is eligible to resort to the Companies Fresh Start Scheme 2020. However, since the DIN number of the petitioners stands cancelled, they are not in a position to avail the benefit of the Scheme. The petitioners prayed that their DIN number may be activated so that the petitioners and the Company can avail the benefit of the Companies Fresh Start Scheme.7. I have heard Advocate Navod Prasannan Pattali learned counsel for the petitioners and Smt. Thulasi Panicker, Central Government Counsel appearing for respondents 1 to 4. I have also heard Advocate M. Gopikrishnan Nambiar representing the 6th respondent.8. The facts placed before this Court show that the Companies Fresh Start Scheme (CFSS) is a new Scheme which has been notified on 30.03.2020. The Scheme is launched by the Government in order to give retrieve to such companies who have defaulted in filing documents. Such companies, now under the Scheme, are allowed to file the requisite financial statements and annual returns and to regularise their operations. The Scheme also envisages non-imposition of penalty or any other charges for belated filing of the documents.9. Learned Central Government appearing for respondents 1 to 4 argued that respondents 1 to 4 have no objection in the Company resorting to the benefit of the CFSS 2020, if the Company is otherwise eligible, but that cannot be a reason to activate the DIN numbers of the petitioners, which stands suspended pursuant to Exts.P4 and P5.10. A perusal of the Scheme would show that an opportunity for active companies who may have defaulted in filing of documents, to put their affairs in order, has been given by the Government of India. It provides the Directors of such Company a fresh cause of action to challenge their disqualification qua the active companies. The petitioners were Directors of Companies and they are disqualified as Directors of Company. The disqualification and cancellation of DINs would be an impediment for them in availing remedies under the CFSS 2020. The purpose and intent of the Scheme is to allow a Fresh Start for companies which have defaulted.11. Considering the intent and purport of the CFSS 2020, this Court is of the firm opinion that in order for the Scheme to be effective, Directors of the Companies ought to be given an opportunity to avail of the Scheme. The launch of the Scheme itself constitutes a fresh and continuing cause of action and therefore, the question of delay or limitation should not arise.12. Considering the fact that the petitioners are Directors of a Com

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pany in respect of which financial statements and annual returns and such other documents are to be filed and the said Company is entitled to avail the benefit of the Scheme, the suspension of DINs would not only affect the petitioners and the Company but the other Companies also in which the petitioners are Directors. Under such circumstances, to disqualify Directors permanently and not allowing them to avail of their DINs and DSCs could render the Scheme nugatory.In the circumstances, the writ petition is disposed of directing respondents 1 to 4 to reactivate the DINs and DSCs of the petitioners forthwith so as to enable the petitioners to avail the benefit of CFSS 2020, if the Company is otherwise eligible to avail the benefits under the Scheme.
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