Tarak, is an engineer by qualification and is part of many start-ups. During the initial start-up days, he had been part of few companies, which were floated by his friends and close relatives. Currently he is a Director

The facts of the given case are similar to that of Sandeep Agarwal & Anr. vs Union of India & Anr. on 2 September, 2020. In this case Hon'ble Court held that the Companies Fresh Start Scheme (CFSS) launched by the Government provides Directors of companies a fresh cause of action. In cases where a person is a director in two companies- one whose name has was struck-off and one which is still active, in such a situation, the disqualification and cancellation of DIN, would be a severe impediment for them in availing remedies under the scheme, in respect of the active company. The purpose and intent of the scheme to be effective, Directors of these companies ought to be given an opportunity to avail the scheme. In view of the present case, Tarak is a director in an active company VTL in respect of which certain documents are to be filed and the said company is entitled to avail of the Scheme, the suspension of DINs would not only affect Tarak in JGL but also in VTL which is active. In order to enable the Director of JGL., to continue the business of the active company VTL.. in the fitness of things, the disqualification of Tarak is set aside. Thus, Tarak can file returns of the active company VTL.