DIN can’t be deactivated/cancelled solely for disqualification u/s 164 (2) of Companies Act, 2013: Kerala High Court
The Kerala High Court held that Director Identification Numbers (DINs) allotted under Rule 10 of the Companies (Appointments and Qualifications of Directors) Rules, 2014, are not liable to be deactivated or cancelled solely for the reason of disqualification for appointment / reappointment as Directors of Companies u/s Section 164(2) of the Companies Act, 2013.
The High Court also upheld the constitutionality of Sections 164 (2) and 167 (1) of the Companies Act, 2013, which deal with the disqualification of Directors from companies. The order further stated that Section 164(2) is not retrospective in operation.
More than 200 petitions were filed challenging the Sections 164(2)(a) and 167(1)(a) of the Companies Act, 2013 and the petitioners are persons who are disqualified pursuant to Section 164(2) for failure of their respective Companies to file Financial Statements/Annual Returns. These petitions were consequently heard together and disposed off by a common judgement.
The said Judgement of High Court of Kerala can be accessed at https://cmshck.kerala.gov.in/digicourt/orders/2020/215700216282020_2.pdf