Introduction to Prospect Legal

Prospect Legal is a premier corporate law firm with a specialized focus on defending directors against wrongful disqualification and challenging adverse rulings by the National Company Law Tribunal (NCLT). With experience in corporate governance and litigation, our team has successfully reinstated directors disqualified under Section 164(2) of the Companies Act, 2013, and navigated complex appeals under Section 252. We combine technical expertise with strategic advocacy to protect our clients’ professional reputations, board positions, and future business opportunities.

Where You Can Find Remedies?

Legal recourse for director disqualification lies with:

• National Company Law Tribunal (NCLT): Primary forum for filing appeals against disqualification under Section 252.
• Ministry of Corporate Affairs (MCA): Resolves technical errors (e.g., incorrect DIN deactivation) through curative petitions.
• High Courts: Hear writ petitions challenging constitutional validity of disqualification.

Facing disqualification? Contact Prospect Legal immediately to safeguard your directorship and career.

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Self-Rectification):

1. Compliance Review: Identify and rectify non-compliance (e.g., overdue filings) to avoid disqualification.
2. Curative Petition: Approach MCA to correct errors in DIN deactivation or disqualification triggers.

Compulsory Process (NCLT Appeal):

1. Filing Appeal: Submit application under Section 252 within 3 years of disqualification.
2. Tribunal Hearing: Present evidence of compliance, procedural lapses, or bona fide errors.
3. Order Implementation: Reinstate DIN and directorship upon favorable NCLT ruling.

Legal Protection Under Key Provisions

Section 164(2) of the Companies Act: Disqualification Triggers

• When Can a Claim Be Filed?
  • If disqualification arises from non-filing of financial statements/annual returns for 3 consecutive years.
  • If the director was unaware of defaults due to fraudulent actions by other directors.
  • If disqualification is based on incorrect or outdated MCA21 database entries.

Section 252 of the Companies Act: NCLT’s Appellate Powers

• Powers of the Adjudicating Authority:
  • Quash disqualification orders if defaults are rectified or proven unintentional.
  • Restore Director Identification Number (DIN) and directorship roles.
  • Impose penalties for non-compliance while granting relief.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Risk Assessment

• Case Audit: Review disqualification triggers, MCA records, and company filings.
• Compliance Gap Analysis: Identify overdue filings or procedural lapses.
• Strategy Planning: Decide between curative petitions, NCLT appeals, or writ petitions.

Step 2: Legal Documentation & Filing

• Draft Section 252 appeals with grounds for wrongful disqualification.
• Prepare affidavits proving rectification of defaults or lack of culpability.
• File interim applications to stay disqualification’s operational impact.

Step 3: Compliance & Negotiations

• Liaise with MCA to expedite curative petitions for DIN reactivation.
• Negotiate with the Registrar of Companies (RoC) to accept belated filings.
• Represent clients in NCLT hearings to demonstrate bona fide intent.

Step 4: Resolution & Final Actions

• Secure NCLT orders reinstating directorship and DIN.
• Ensure compliance with tribunal directives (e.g., penalty payments).
• Provide post-resolution advisory to prevent future defaults.