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Section 155: Prohibition to obtain more than one Director Identification Number

Companies Act • Official Statutory Text & Practice Guide

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Act 2013
Section 154 All 470 Sections of Companies Act Section 156
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Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 155

Section 155 of the Companies Act, 2013 creates an absolute statutory prohibition against an individual applying for, obtaining, or possessing more than one Director Identification Number, preserving the integrity and transparency of corporate management registers.

  • Absolute Prohibition on Multiple Identifiers: An individual who has already been allotted a DIN under Section 154 is strictly prohibited from applying for, obtaining, or possessing another DIN under any circumstances.
  • Prevention of Corporate Identity Camouflage: The statutory object of Section 155 is to prevent directors from evading disqualifications, tax liabilities, or regulatory enforcement by assuming multiple corporate personas across different companies.
  • Statutory Rectification via Form DIR-5: Where an individual inadvertently or mistakenly obtains multiple DINs, the second DIN must be immediately surrendered for cancellation before the Regional Director using Form DIR-5 under Rule 11 of the Appointment and Qualification Rules.
Key Landmark Precedents:
  • Bhagavantha Rao v. Union of India, 2020 SCC OnLine Hyd 528: The Telangana High Court affirmed that possessing multiple DINs violates the mandatory prohibition in Section 155, which is designed to ensure complete personal accountability of corporate officers.
  • Re: B.R. Kundra, (2018) Comp Cas (NCLT New Delhi): The NCLT held that compounding under Section 441 for possessing multiple DINs in violation of Section 155 requires surrender of the duplicate DIN in Form DIR-5 and an affirmative affidavit certifying that no corporate assets were siphoned or fraud perpetrated under the duplicate identity.
Courtroom Practice & Strategic Litigation Guidance:

During director onboarding or due diligence, conduct an MCA PAN-based search to confirm that the individual does not hold multiple DINs. If a dual DIN is discovered, immediately file Form DIR-5 for cancellation of the secondary DIN before the Regional Director under Rule 11, and simultaneously submit a suo motu compounding application under Section 441 before the RoC/RD to forestall penal adjudication under Section 159.

Section 154 All 470 Sections of Companies Act Section 156