S.164(2) Of Companies Act 2013 Has No Retrospective Application Before 2014-15 FY : Supreme Court's Prima Facie View

The Supreme Court has expressed a preliminary view that Section 164(2) of the Companies Act, 2013, which deals with disqualification of directors, does not apply retrospectively before the 2014-15 financial year. This section mandates that a director of a company will be disqualified if the company fails to file financial statements or annual returns for three consecutive years. The Court's view implies that the disqualification provisions should be applied only from the commencement of the financial year 2014-15 onwards, not before. This view is crucial for understanding how directors' disqualification will be evaluated in relation to the timing of compliance failures.