How to Remove Director Disqualification in India

Private Limited Company

How to Remove Director Disqualification in India

Registrationwala

Last Updated on November  15, 2025

MCA has disqualified many directors over the past few years regardless of the degree of non-compliance. However, through the removal of director disqualification, you can get back your position as the director of your company.

Over the past few years, the MCA or Ministry of Corporate Affairs has disqualified more than 3 Lakh directors who weren’t compliant with the rules and regulations of the Companies Act. That is not all, in order to prevent these directors to make any sort of dealings; the MCA deactivated their Director Identification number. Regardless of how moral or “just” this choice was, the truth is several innocent Directors also suffered. Therefore, when the Ministry initiated DIN activation, they moved to the center to ask for help. The result of this is “Condonation of Delay Scheme” that provides relief to the directors by aiding them with provisions to Remove director Disqualification.

Reasons for Director Disqualification

There are two reasons for Director Disqualification:

  1. The Directors haven’t filed the Financial statements and annual returns consecutively for the past 3 years (financial years) or
  2. The director has not repaid the debts he has taken or has failed to do so for 1 year.

Once a Director is disqualified, then under the original plan, he won’t be able to be a director of that company or any other company for the next 5 years (5 years from the date of disqualification). However, the condonation of delay scheme can help.

What is Condonation of Delay Scheme?

According to Section 8 of the companies act, directors of companies are required to file their financial returns each year. The Companies Act of 2013 then introduced that any director failing to these returns for three consecutive years or more shall face disqualification on grounds of non-compliance. The Condonation of Delay scheme (CODS) then became operational courtesy of the appeal of aggrieved directors. Under this scheme, the disqualified directors are given a temporary DIN (Director Identification Number) to file the deferred tax returns over the course of the next few months. If the Companies still do not comply, their directorship is disqualified for the next 5 years.

How Does Scheme Work?

When a director is disqualified, they won’t be able to hold the directorship of that or any other company for the next 5 years. Therefore, under the CODS, the company can appoint temporary directors to execute the resolutions to file and submit the financial statements and annual returns. These directors are given new DIN and DSC for the time being to file all the annual returns. Furthermore, it is these new directors that shall pass the resolution to re-hire the disqualified ones and passing the request to the Registrar of Companies.

Director Disqualification Removal Process

  1. Drafting a Writ application
  2. Filing the director disqualification matter with the High Court
  3. The advocates appear before the High Court regarding director disqualification
  4. Obtaining the Final Order from the High Court
  5. Filing all the financial and annual compliances with the Registrar of Companies
  6. Activation of Director Identification Number and Removal of Director Disqualification

What documents are required to remove a director's disqualification?

One thing to remember is this: there is a way to remove Director Disqualification without the condonation of delay scheme (CODS). However, CODS do makes the process quite streamlined.

With the CODS, the documents required are as follows:

  1. Overdue documents
  2. E-CODS

Without CODS, the documents required are as follows:

If the company was active

  1. An Application before the National Company Law Tribunal
  2. The documents that are overdue
  3. E-CODS on MCA 21 portal

If the company wasn’t active

  1. Petition to the High Court
  2. Overdue Documents
  3. E-CODS on the MCA 21 portal

Frequently Asked Questions (FAQs)

Q1. What is director disqualification under the Companies Act?

A. Director disqualification is when the MCA bans a person from acting as a director due to non-compliance, such as not filing annual returns or financial statements for three consecutive years.

Q2. How can I remove my director disqualification?

A. You can remove director disqualification by filing a petition in the High Court, completing all pending compliances, or using the CODS scheme (if available).

Q3. Can a disqualified director become a director again?

A. Yes, once the disqualification is removed and the DIN is reactivated, the person can again become a director in any company.

Q4. How long does the director disqualification last?

A. It usually lasts 5 years from the date of disqualification.

Q5. What is the CODS scheme?

A. CODS (Condonation of Delay Scheme) is an MCA scheme that temporarily allows disqualified directors to file pending returns and restore compliance to remove disqualification.

Q6. Can I restore my DIN after disqualification?

A. Yes, you can restore your DIN after removing the disqualification through the High Court order or through CODS (if applicable).

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