Legal Era Nov 2017 | Page 15

Delhi High Court

NOTICE ISSUED ON DISQUALIFICATION OF PRIVATE CO . DIRECTORS : DELHI HC TO CENTRE

Thursday , October 12 , 2017

On October 10 , the Delhi High Court issued notice to the central government in a petition filed against two notifications , disqualifying directors of private limited companies for non-filing of financial statements for three continuous financial years .

Apart from disqualification from the said companies , the directors would also be barred from being designated as directors in any other company for a period of 5 years .

The Bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar also stayed the impugned notifications with regard to the petitioners Sushen Mohan Gupta and other directors .

The petition sought relief on grounds that the said disqualification of directors under Section 164 ( 2 )( a ) of the Companies Act , 2013 , without granting them the opportunity to be heard , was unreasonable , unjust , arbitrary , illegal and unconstitutional .

The petition , filed by Advocate Manish Jain , states ,

“ The gross effect of the said section is such that it can lead to a situation of vacuum within the various companies , as the directors disqualified would not be in a position to appoint a new director which in turn would lead to instant stalling of business activities in various companies that might national 15

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Jharkhand High Court SPECIAL DRIVE TO DISPOSE 500 PENDING TRIAL COURT CASES : JHARKHAND HC

Monday , September 11 , 2017

A special drive has been initiated for disposal of over 500 cases pending in trial courts by Acting Chief Justice of the High Court of Jharkhand by January next year . A day-to-day hearing of these fast-tracked cases shall be done , which are related to law and order issues in the state .

The first list of 362 cases pending in trial courts for day-today hearing in the courts had been stated in a press release issued by the high court Acting Chief Justice DN Patel has severely affect the economy as a whole .” Furthermore , it was contended that Section 274 of the Companies Act 1956 was limited to dealing with disqualification of directors of public limited companies . Only after the Companies Act , 2013 came into effect ; the directors of private limited companies were brought within the ambit of disqualification for the first time . Therefore , the new provision ought to have a prospective effect and not a retrospective one .

assigned these cases to 77 judicial officers of all 24 districts , including Ranchi , Jamshedpur , Bokaro and Dhanbad .

A high-level meeting was called by the ACJ to secure continuous presence of witnesses in at least these 500 cases so that they may be fast-tracked , according to the HC . Chief Secretary of Jharkhand , Secretary Home Department , Director General of Police and Law Secretary are participants in the discussion . The state government also informed its additional public prosecutors to be ready for tackling the cases .

This was the third initiative taken by the ACJ in recent days to reduce pendency of cases in the state . A special drive is underway for disposal of cases under the Negotiable Instrument Act . By now , total 12,028 cases have been disposed of in these two special drives .

These disposals are over and above the daily work of the trial courts , like bail applications , anticipatory bail applications , stay and injunction applications , appeals and other proceedings of the courts .

www . legaleraonline . com | Legal Era | November 2017