Case Note & Summary
The petitioners, Mr. Dilipraj Pukkella and Mr. Muhammed Imthiyaz, directors of M/s. Vihaan Direct Selling (India) Private Limited, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru. They sought a declaration that the action of the respondents (Union of India, Regional Director, and Registrar of Companies) in disqualifying and blocking their Director Identification Numbers (DINs) and preventing them from filing documents through the MCA portal was unconstitutional and violative of their fundamental rights under Article 19(1)(g). The court examined the issue and found that the respondents had acted without issuing any prior notice or providing an opportunity of hearing to the petitioners. The court held that such disqualification under Section 164(2) of the Companies Act, 2013 cannot be done in a manner that violates principles of natural justice. The court allowed the writ petition, declaring the impugned action as unconstitutional, and directed the respondents to restore the DINs of the petitioners forthwith.
Headnote
A) Constitutional Law - Right to Practice Profession - Article 19(1)(g) of the Constitution of India - Disqualification of Directors - The action of the respondents in disqualifying and blocking the DINs of the petitioners without prior notice and opportunity of hearing was held to be unconstitutional and violative of the fundamental right to practice any profession under Article 19(1)(g). The court held that such disqualification cannot be done without following principles of natural justice. (Paras 1-10) B) Company Law - Disqualification of Directors - Section 164(2) of the Companies Act, 2013 - Director Identification Number (DIN) - The court held that disqualification under Section 164(2) requires a prior notice and opportunity of hearing to the director before blocking the DIN. The impugned action was set aside and the respondents were directed to restore the DINs of the petitioners. (Paras 1-10)
Issue of Consideration
Whether the action of the respondents in disqualifying and blocking the DINs of the petitioners without prior notice and opportunity of hearing is unconstitutional and violative of Article 19(1)(g) of the Constitution of India.
Final Decision
The writ petition is allowed. The impugned action of the respondents in disqualifying and blocking the DINs of the petitioners is declared unconstitutional. The respondents are directed to restore the DINs of the petitioners forthwith.
Law Points
- Right to practice profession under Article 19(1)(g)
- Natural justice
- Disqualification of directors
- Director Identification Number (DIN)
- Companies Act
- 2013
