SNDP Yogam posts: Kerala HC stays single bench order disqualifying Vellappally Natesan, others

Kochi: A high court division bench has stayed single bench order that disqualified SNDP Yogam general secretary Vellappally Natesan and others from holding posts in the Yogam and declared their offices vacant for alleged violations of the Companies Act, 2013.The bench of Chief Justice Soumen Sen and Justice V M Syam Kumar issued the interim order on appeals filed by Natesan and others challenging the single bench decision. HC further adjourned the appeals for a detailed hearing in June 2026.The single bench had disqualified all board members of the SNDP Yogam who did not possess a director identification number (DIN), as mandated under Section 152(3) of the Companies Act. HC also noted that the SNDP Yogam had failed to file annual accounts and returns from 2006-07 to 2016-17 until Sept 2020, thereby attracting disqualification under Section 164(2) of the Act, which applies when a company fails to file financial statements or annual returns for three consecutive years. Consequently, HC held that the directors had incurred disqualification from 2009 onwards. The single bench also directed the state govt to appoint the required number of directors to hold office until new directors are appointed by the company in a general meeting.Aggrieved by this, Natesan, along with his son Thushar (vice president of the Yogam), M N Soman (president) and Arayakkandil Santhosh (devaswom secretary), filed appeals, contending that disputes relating to the disqualification of directors and the internal management of a company fall within the jurisdiction of the National Company Law Tribunal (NCLT).In the appeals, the division bench noted that, from 2009 to 2019, the original records had been lying before HC in connection with the company, which was entangled in various litigations. Accordingly, HC observed that the view of the registrar of companies in condoning the delay in filing returns prima facie appears reasonable and justifiable. HC also observed that it prima facie appears that the appellants possessed deemed DIN. It also noted, based on the order of the inspector general of registration, that the rules relating to DIN, as applicable in the state of Kerala, have not yet been framed. Therefore, the appellants cannot be held guilty of contravening any provisions requiring them to furnish DIN, especially when they already possess DIN under the Companies Act, 2013.Accordingly, HC stayed the single bench order, thereby allowing the appellants to continue in their posts.