Query - Section 164(2)(a) – Interpretation of “Any Continuous Period of Three Financial Years

A company incorporated on 05.10.2016 has not filed its AOC-4 or annual returns for any financial year till date. A & B has been director since incorporation. Even a bank acount is not opened even from incorporation and no transaction till date.

Under Section 164(2)(a), the Act refers to a company not filing for “any continuous period of three financial years.”. Then next 5 years director is disqualied.

Does this mean that each successive/overlapping three-year period (2016-17 to 2018-19, 2017-18 to 2019-20, etc.) creates a fresh five-year disqualification, or is the five-year disqualification triggered only once upon the first three-year default (ie 2016-17 to 2018-19)?

A wanted to incorporate a new company with C today. Is A disqualified as on today?

How this word "any" has to be interpreted  "one out of many", or  "each and every".

If "each and every" is used to interpret, there will be no end. He can never be appointed as director (even now)
 
What is your opinion on this?
 
 
Replies (1)
  • Status Today: Director A is disqualified under Section 164(2)(a) and cannot incorporate or join a new company as a director today.

  • Interpretation of "Any": "Any" applies to rolling, continuous 3-year blocks of default. Because filings were never made from 2016 through 2026, new 5-year disqualification periods continue to overlap and extend the disqualification window up to 2028/2029.

  • Next Steps: To regain director eligibility, Director A must either clear all pending MCA filings, strike off the defunct company via Form STK-2, or obtain relief from the High Court via a Writ Petition.

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