Telangana HC rules ROC must process DIR-12 even with private disputes. No unilateral withholding without court injunction.
ROC Cannot Withhold DIR-12 for Private Disputes: Telangana HC
The Telangana High Court directed the ROC to process a DIR-12 form despite the existence of private disputes among shareholders, holding that statutory compliance cannot be held hostage to civil disagreements.
The petitioner had filed DIR-12 to record cessation of directorship, but the ROC declined action citing ongoing litigation. The court ruled that unless a court has issued an injunction, the ROC must act on duly filed forms.
"The office of the ROC is not a forum to determine the veracity of disputes,"the bench observed, directing immediate processing of the application.
This decision clarifies the limited role of the ROC in corporate filings. Private disputes, without judicial restraint, do not justify non-compliance with statutory timelines. Practitioners should challenge undue delays on this precedent.
