Whether disqualification of directors for non-filing of financial for a continuous period of three years from FY 2014, 2015 & 2016 tantamount to retrospective effect of Companies Act, 2013?
Bombay High Court in its order dated October 12, 2017, gave clarity on following observations pertaining to Section 167(2) (a):
1) Non-filing of financial for FY 2014 will be treated as Non-Compliance under
Companies Act, 2013 as the Act already came into operations as on filing date of financial.
2) The effect of the provision of Section 167(2) (a) is not retrospective in nature.
3) The order of disqualification of Directors came into effect from September 7, 2014, for non-filing of financial or annual returns for 2014, 2015 and 2016 which is well within the timeframe of the provision.
4) The pendency of this petition will not stop the applicant to file DIR 10 for removal of disqualification and that the concerned authorities can take appropriate action which will be independent of the petition before HC.