No Disqualification on Directors for non-Filing of Balance Sheets before FY 2014-15, Supreme Court observes Prima Facie

The Supreme Court recently observed that directors cannot be disqualified for failing to file balance sheets before the fiscal year 2014-15. The Court highlighted that such disqualification under the Companies Act, 2013, which mandates filing annual returns and balance sheets, should not be applied retroactively. This decision is significant as it clarifies that non-filing prior to the enactment of this law does not warrant disqualification. The Court’s stance provides relief to directors concerned about penalties for past non-compliance under the new regulatory framework.