Alok Singh
Mr. Bal Kishan Sharma, a registered Independent Director and corporate professional, filed a Writ Petition (W.P.(C) 1382/2025) before the Delhi High Court for being wrongly shown as a “Director” (instead of “Non-Executive Independent Director”) in the master data of the Registrar of Companies (‘ROC’). This error led to his unnecessary involvement in consumer and legal cases. The petitioner sought a correction of his designation on the Ministry of Corporate Affairs (MCA) portal.
On 4th February 2025, Justice Sachin Datta directed the MCA to treat Sharma’s email dated 28.12.2024 as a representation. Further, the RoC was asked to decide the matter within eight weeks and issue a reasoned order if rejecting the request.
As per an internal email dated 9 April 2025, the MCA decided to add a “category field” (such as Independent Director) in addition to the “designation” field in the company master data. This change is based on e-Form DIR-12 and is pending implementation by the service provider (LTIM).
Mr. Sharma pointed out that misuse of MCA records by litigants leads to harassment of Independent Directors in forums like Consumer Commissions, NCDRC, RERA, and even criminal courts.
As the Supreme Court in leading cases like SEBI v. Gaurav Varshney, (2016) 14 SCC 430, Sunil Bharti Mittal v. CBI, (2015) 1 SCR 377, Municipal Corporation of Delhi v. Ram Kishan Rohtagi, AIR 1983 SC 67 and many more, decided that Independent Directors are not liable for company actions unless direct involvement is proven. Additionally, MCA Circular No. 1/2020 advises authorities not to initiate proceedings against Independent or Non-Executive Directors without sufficient evidence. This means that the incorrectness in the MCA record leads to unnecessary legal hurdles, violating all these laid principles and rights.
Case Title: Bal Kishan Sharma v. Union of India & Others
Case Number: W.P.(C) 1382/2025
Bench: Justice Sachin Datta
Click here to access the order.
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