HC: DISQUALIFYING DIRECTORS PERMANENTLY COULD RENDER CFSS, 2020 ‘NUGATORY’; DIRECTS FORTHWITH REACTIVATION OF DINS, DSCS
Kerala HC rules that, in order for the CFSS, 2020 to be effective, Directors of Companies ought to be given an opportunity to avail of the Scheme, and holds that under such circumstances, to disqualify Directors permanently and not allowing them to avail of their DINs and DSCs could render the Scheme nugatory; Court remarks that, “The purpose of the Scheme is to allow a Fresh Start for companies which have defaulted.”, and further states that the disqualification and cancellation of Petitioners’ (who were disqualified Directors) DINs would be an impediment for them in availing the benefit under CFSS, 2020; Therefore, HC directs the RoC to reactivate the DINs and DSCs of Petitioenrs forthwith, so as to enable them to avail the benefit of CFSS:Kerala HC
The judgment was delivered by Justice N. Nagaresh
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