DIN reactivated post disqualification u/164(2)

Here’s a detailed take on the queries about DIN reactivation post disqualification under Section 164(2):

1. Does DIN reactivation mean Mr. A can continue as Director in Company 2?
   No. Reactivation of the DIN by itself does not automatically remove the disqualification under Section 164(2). Until the disqualification is formally removed, Mr. A remains disqualified from being a director in any company, including Company 2.

2. Can Mr. A file DIR-10 requesting ROC to remove disqualification?
   Yes. Under Section 164(2), the disqualification can be removed by the ROC upon the company filing all overdue financial statements and annual returns. Mr. A (or the company) can file Form DIR-10 along with the necessary documents to request removal of disqualification. However, since Company 1 is struck off and not in business, fulfilling this requirement might be impossible.

3. What is the other way out if Company 1 cannot be revived through NCLT?

   • If revival of Company 1 is not feasible, Mr. A’s disqualification will continue as long as the conditions of Section 164(2) remain unfulfilled.

   • Mr. A can consider making a representation to the ROC for removal of disqualification citing special circumstances, but this is discretionary and rarely granted without compliance.

   • Alternatively, Mr. A may have to wait for the disqualification period to lapse (usually 5 years from date of disqualification) before becoming eligible again.

4. Is there any Supreme Court order squashing the retrospective application of Section 164(2) to private companies?
   Currently, no Supreme Court general order invalidates the retrospective application of Section 164(2) for private companies. The provision is applied uniformly to private and public companies. However, courts have occasionally provided relief on case-to-case basis depending on facts, but no blanket quashing exists.

Summary: Reactivation of DIN does not equate to removal of disqualification. The primary step to remove disqualification is to file pending financials for the struck-off company, which may not be possible here. Without that, Mr. A remains disqualified from acting as director anywhere. Legal or discretionary remedies are limited, and there’s no blanket judicial relief from Section 164(2) applicability on private companies.