Directors of SNDP Yogam Disqualified for Non-compliance with Statutory Requirements; Office Vacated Under Companies Act, 2013
In a significant ruling, the Kerala High Court has disqualified the directors of the Aruvipuram Sree Narayana Dharma Paripalana Yogam (SNDP Yogam) due to non-compliance with statutory requirements under the Companies Act, 2013. The judgment delivered by Mr. T.R. Ravi, J., highlights the disqualification of directors under Sections 164(1)(h) and 164(2), citing the failure to possess a valid Director Identification Number (DIN) and non-filing of annual returns for consecutive years.
The writ petitions, filed by members of the SNDP Yogam, challenged the order issued by the Inspector General of Registration, which had previously held that the directors were not disqualified for the financial years 2014-2015 and 2015-2016. The High Court quashed this order, emphasizing that the directors were ineligible to continue their office due to statutory disqualifications.
The judgment clarifies that the immunity provided under the Companies Fresh Start Scheme (CFSS), 2020, does not reverse disqualifications incurred due to non-compliance with Section 164(2) of the Companies Act, 2013. It further directed the State Government to appoint the required number of directors to hold office until elections are conducted as per statutory requirements.
The ruling also addresses the principles of statutory interpretation, asserting that legal maxims such as 'lex non cogit ad impossibilia' and 'impotentia excusat legem' do not apply where the impossibility of compliance arises from self-created obstacles.
The High Court's decision is a pivotal step in ensuring the adherence to statutory norms and proper governance within the SNDP Yogam, impacting its administration of various educational and financial institutions. The judgment mandates the conduct of elections to ensure a legally constituted board of directors.
Bottom Line:
Disqualification of Directors under Companies Act, 2013 - Respondents held disqualified under Sections 164(1)(h) and 164(2) for non-compliance with statutory requirements, including failure to possess valid DIN issued by the State Government and non-filing of annual returns for consecutive years.
Statutory provision(s): Companies Act, 2013 Sections 164(1)(h), 164(2), 167(1)(a), 167(3), 460
Prof.M.K.Sanoo v. State of Kerala, (Kerala) : Law Finder Doc id # 2865001
