Karnataka High Court: Director Can’t Be Disqualified Under Section 164(2) For Over 5 Years

The Karnataka High Court has ruled that the disqualification of a company director under Section 164(2) of the Companies Act, 2013, cannot extend beyond five years. The Court clarified that the statute does not permit any extension of the disqualification period.

The court held that once five years had lapsed from the date of default, the director cannot remain disqualified, as authorities lack the power to prolong the disqualification term. 

The Court relied on the plain language of Section 164(2), stating that “restriction can only be for a period of five years.” 

The petition challenging this interpretation was dismissed.

[Dilipraj Pukkella & Anr v UOI & Ors.]