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Kundan Singh Vs. Moga Transport Co. (P.) Ltd. and ors. - Court Judgment

LegalCrystal Citation
SubjectCompany
CourtPunjab and Haryana High Court
Decided On
Case NumberCivil Writ Petition No. 2010 of 1978
Judge
Reported in[1987]62CompCas600(P& H)
ActsCompanies Act, 1956; Industrial Disputes Act, 1947
AppellantKundan Singh
RespondentMoga Transport Co. (P.) Ltd. and ors.
Appellant Advocate Bhagirath Dass, Sr. Adv.,; Ramesh Kumar and; A.K. Jaiswa
Respondent AdvocateNone
DispositionPetition allowed
Cases ReferredSurinder Nath Khosla v. Excise and Taxation Commissioner Punjab
Excerpt:
.....from the date of such communication of the reasons would imply communication of a copy of the written order itself, a party who knows about the making of an order cannot ignore the same and allow grass to grow under its feet and do nothing except waiting for a formal communication of the order or to choose a tenuous plea that even though he knew about the order, he was waiting for its formal communication to seek redress against the same in appeal. if a party does not know about the making of the order either actually or constructively it may claim that the period of limitation would start running from the date it acquires knowledge of the making of an order but one cannot understand how a party, who has acquired knowledge of the making an order either directly or constructively can..........writ petition despite service. 3. mr. ramesh kumar, counsel for the petitioner, has sought to sustain the afore-mentioned ground from the ratio of a division bench decision, of this court in surinder nath khosla v. excise and taxation commissioner punjab [1964] 15 stc 838 (p & h). this court in surinder nath khosla's case held that unless the statute in question made the managing director of a company personally liable for the dues recoverable from the company, he could not be held personally responsible. 4. neither in the company law nor in the industrial disputes act does any provision making the managing director personally liable for recovery of dues against the limited company exist. 5. in view of the above, i hold that the direction contained in annexure p-4 is clearly illegal and.....
Judgment:

D.S. Tewatia, J.

1. Kundan Singh, petitioner, who was the managing director of Moga Transport Co. (P,) Ltd. at the relevant time has impugned the direction contained in letter No. EMP/3232, dated February 16, 1976, from the Labour Commissioner, Punjab, Chandigarh, to the Collector, District Faridkot (annexure P-4), to effect recovery of the wages of the workers found due against the company under various awards from the personal property of the petitioner, on the ground that the managing director could not be made personally liable for the dues recoverable from the limited company.

2. No written statement has been filed nor any opposition has been entered to this writ petition despite service.

3. Mr. Ramesh Kumar, counsel for the petitioner, has sought to sustain the afore-mentioned ground from the ratio of a Division Bench decision, of this court in Surinder Nath Khosla v. Excise and Taxation Commissioner Punjab [1964] 15 STC 838 (P & H). This court in Surinder Nath Khosla's case held that unless the statute in question made the managing director of a company personally liable for the dues recoverable from the company, he could not be held personally responsible.

4. Neither in the company law nor in the Industrial Disputes Act does any provision making the managing director personally liable for recovery of dues against the limited company exist.

5. In view of the above, I hold that the direction contained in annexure P-4 is clearly illegal and the same is, therefore, quashed. The writ petition is allowed, but with no order as to costs.


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