Telangana High Court

WP/24464/2020 of Mr. Vaddanam Rama Krishna Vs Union of India on 31 December 2020

THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTY FIRST DAY OF DECEIV1BER TWO THOUSAND AND TWENTY PRESENT THE HON,BLE DT. JUSTICE SHAMEEM AKTHER wRtT PET|TTON NO. 24464 0F 2020 Between: 1. Ir,4 r. Vaddanam Rama Krishna, Sio. Papeswara Rao Aged About 48

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction)

THURSDAY, THE THIRTY FIRST DAY OF DECEIV1BERTWO THOUSAND AND TWENTY

PRESENT

THE HON,BLE DT. JUSTICE SHAMEEM AKTHER

wRtT PET|TTON NO. 24464 0F 2020

Between:

1. Ir,4 r. Vaddanam Rama Krishna, Sio. Papeswara Rao Aged About 48 Years, Occ.Business, Rlo. 1-23-472 Pno.113 Bhoodevi Ngr, Venkata Puram, Secunderabad,Telangana State, lndia-50001 5Business, Rlo. 1-23-472 Pno.113 Bhoodevi Ngr, Venkata Puram, Secunderabad,Telangana State, lndia-50001 5

2. lvlr. Lakshmi Arundhathi Vaddanam, D/o. Guravaiah Naidu Paspuleti Aged About43 Years, Occ. Business, R/o. Plot No.l 13, Bhoodevi Nagar, H.No. 1-23-472,Venkatapuram, Secunderabad, Telangana State lndia-500015..,.PETITIONERS43 Years, Occ. Business, R/o. Plot No.l 13, Bhoodevi Nagar, H.No. 1-23-472,Venkatapuram, Secunderabad, Telangana State lndia-500015..,.PETITIONERSAND1Union of lndia, The Ministry of Corporate Affairs Represented by its Secretary AWing, Shastri Bhawan, Rajendra Prasad Road, New Delhi [- ]110 0'1 [1,]1Union of lndia, The Ministry of Corporate Affairs Represented by its Secretary AWing, Shastri Bhawan, Rajendra Prasad Road, New Delhi [- ]110 0'1 [1,])The Registrar of Companies, Telangana State,2nd Floor, Corporate Bhawan,GSI Post, Tattianaram, Nagole, Bandlaguda, Hyderabad - ,OO.IR?aTONDENTSGSI Post, Tattianaram, Nagole, Bandlaguda, Hyderabad - ,OO.IR?aTONDENTS

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Petition under Article 226 of the Constitution of lndia [praying ]that in thecircumstances stated in the affidavit filed therewith, the High Court may be [pleased]to pass an order or direction or any other [proceeding ]one in the nature of Writ oflVandamus declaring the action of respondents in deactivating the DIN Numbers01687559, 01735730 for the disquaiification Period from [111112016 ]to 3111012021 ofthe Petitioners and restricting the petitioners from filing statutory returns, i.e., theannual returns of the Petitioners company as arbitrary, illegal, without [jurisdiction,]contrary of the provisions of the Companies Act, 20 13 and Rule 1 1 of the Companiescircumstances stated in the affidavit filed therewith, the High Court may be [pleased]to pass an order or direction or any other [proceeding ]one in the nature of Writ oflVandamus declaring the action of respondents in deactivating the DIN Numbers01687559, 01735730 for the disquaiification Period from [111112016 ]to 3111012021 ofthe Petitioners and restricting the petitioners from filing statutory returns, i.e., theannual returns of the Petitioners company as arbitrary, illegal, without [jurisdiction,]contrary of the provisions of the Companies Act, 20 13 and Rule 1 1 of the Companies(Appointment of Directors) Rules, 2014, violative of the principle of natural [justice]besides violating the petitioners rights [guaranteed ]under Article 14 and Article 19 [(1)](g) of the Constjtution of lndia.lA NO: 1 OF 2020besides violating the petitioners rights [guaranteed ]under Article 14 and Article 19 [(1)](g) of the Constjtution of lndia.lA NO: 1 OF 2020

Petition under Section 151 CPC [praying ]that in the circumstances stated [in]the affidavit filed in support of the petition, the High Court may be [pleased ]to directthe respondent to restore the DIN numbers 0168755S, 01735730 for thed isq ualification Period from 111112016 to 3111O12021 of the Petitioners. So as toenable them to submit the annual returns and Financial Statements of thePetitioner's company.

Counsel for the Petitioner: SRI AJAY BABU MANDADAPU

Counsel for the Respondents: SRI NAMAVARAPU RAJESHWAR RAO,ASSISTANT SOLICITOR GENERAL

The Court made the following: ORDER

THE HON.BLE DT. JUSTICE SHAMEEM [AKTHER ][,]WRIT PETITION No.24464 [OF ][2O2O ][-]

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ORDER:

The petitioners challenge their disqualiflcation [from]Directorship under Section 164(4 of [the ][Companies ][Act, ][2013,]for the alleged default in filing financial [statement/annual]returns, and consequently, seek restoration [of ][their ][Director]Identification Numbers [(DINs) ]viz., 01687559 [and 01735730.]

2. Learned counsel for the [petitioners would ][submit ][that ][the]issue raised in the [present ]Writ [Petition ][is ][squarely covered ][by]the order, dated 24.09.2020, [passed ]in [W.P.No.16522 ][of ][2020,]which was disposed of in terms of the [common ][order, ][dated]18.07.2019, [passed ]in W.P.No.5422 [ot ][2018 and ][batch.]

3. Sri Siripuram Keshava, learned [counsel ][representing]Sri Namavarapu Rajeshwar Rao, [learned Assistant ][Solicitor]General of India, appearing [for the ][respondents, ][has ][fairly]conceded that the order, dated [24.09.2020, passed ][in]W.P.No.16522 of 2020, is similar to the [common ][order, ][dated]18.07.2019, [passed ]in W.P.No.5422 [of ][2Ol8 ][and ][batch.]

4, The operative [portion ]of [the ][common ][order, ][dated]18.07.2019, [passed ]in W.P.No.5422 [of ][2078 ][and batch, ][reads ][as]u nd er:

"For the foregoing reasons, the [impugned orders ][in]the writ [petitions ]to the [extent ][of ][disqualifying ][the]petitioners under Section 164 [(2) ][(a) of ][the ][Act ][and]deactivation of their [DINs, ][are ][set ][aslde, ][and ][the ][2"d]is directed [to ][activate ][the ][DINs ][of ][the]respondent the writ [petitions ]to the [extent ][of ][disqualifying ][the]petitioners under Section 164 [(2) ][(a) of ][the ][Act ][and]deactivation of their [DINs, ][are ][set ][aslde, ][and ][the ][2"d]is directed [to ][activate ][the ][DINs ][of ][the]respondent petitioners, enabling [them ][to ][function ][as ][Directors other]than in strike [off ][comPanies.]

It is made clear [that this ][order ][lvill ][not ][preclude ][the]2'c respondent [from ][taking ][appropriate ][action ][in]accordance with [law ][for ][violations ][as ][envisaged ][under]Section 164 [(2) of ][the ][Act, ][giving ][the ][said ][provision]prospective effect from [01.04.2014 ][and ][for ][necessary]action against [DIN in ][case ][of ][violations ][of ][Rule ][11 of ][the]Rules.

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It is also made [clear ][that ][if ][the ][petitioners ][are]aggrieved by [the ][action of ][the ][respondents ][in striking ][oFf]their companies [under Sectlon 248 ][of the ][Act, ][they ][are at]tibefty to avail [alternative ][remedy under Section ][252 ][of]the Act.

All the writ [petitions ][are ][accordingly allowed ][to ][the]extent indicated [above. ]["]

5. In view of the [above, ][the ][present ][Writ ][Petition is ][disposed]oF in terms of [the ][common ][order, dated 18'07'2019, ][passed ][in]of [2018 and ][batch. ][There shall be no ][order ][as to]W.P,No.5422 costs.

Miscellaneous [petitions, ][if ][any, ][pending ][in this ][Writ ][Petition]shall stand closed.

SD/.L.LAKSHMI [BABU]aSStSrnr'rf [REGISTRAR]

,TRUE [COPY']

NO FFICER

SECTI

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HIGH COURT

DATED:31 [11212020]

ORDERWP.No.24464 [of ][2020]

DISPOSING [OF ][THE WRIT ][PETITION]WITHOUT [COSTS]

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