9911796707
TMI Blog2017 (11) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... hamundeeswari Versus Commercial Tax Officer, Vellore Rural [2007 (1) TMI 254 - HIGH COURT OF MADRAS], where it was held that It is well-settled that a company is a legal entity by itself and it can sue or can be sued as a legal entity and any dues from the company have to be recovered only from the company and not from its directors - petition allowed - decided in favor of petitioner. - W.P.No.25513 of 2008, W.M.P.No.1 of 2008 - - - Dated:- 31-10-2017 - T. S. Sivagnanam, J. For the Petitioner : Mr.C.V.Vijayakumar for M/s.T.R.Rajaraman For the Respondents : Mr.S.Kanmani Annamalai ORDER Heard Mr.C.V.Vijayakumar, learned counsel for the petitioner and Mr.S.Kanmani Annamalai, learned Additional Government Pleader appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, the company owns properties. Therefore, the impugned notice proposing an auction of the petitioner's personal property is wholly without jurisdiction. 7.The above view is supported by the decision of this Court, in the case of Chamundeeswari (W.P.No.3085 of 2000) P.R.Sridharan (W.P.No.3086 of 2000) reported in [2007] 6 VST 399 (Mad). The operative portion of the order reads as follows:- On hearing counsel on either side, I am afraid, the argument advanced on behalf of the respondent by the learned Government Advocate can be accepted. It is well-settled that a company is a legal entity by itself and it can sue or can be sued as a legal entity and any dues from the company have to be recovered only from the company and not fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor. In the case of Ramachandran v. State of Kerala [1984] 55 STC 209, the High Court of Kerala held that there is no provision of law which enables the Revenue to proceed against a director of a company, personally for the arrears of sales tax dues from the company, which is a distinct and different legal entity, but if it is shown or substantiated that the director has got the properties of the company, the Revenue would not be prevented from proceeding against him. In the case of Punalur Paper Mills Ltd., v. District Collector, Quilon [1985] 60 STC 193, the Kerala High Court held that in the absence of a specific provision in the Kerala General Sales Tax Act fastening liability on the director or the managing director of a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Bom), the court held that the directors of any company, whether public limited or private, are not personally liable for the debts of the company unless the company court found them guilty of any misfeasance or wrong-doing. In G.C.Mehrotra v. Deputy Collector (Collections), Sales Tax [1998] 110 STC 406 (All), the court held that in case of a private company, recovery of tax dues from it cannot be made from its directors, unless permitted by specific provision of the law or by an agreement between the parties. There are other decisions in this regard referred to by learned counsel for the petitioners, but in view of our finding that in absence of any order of winding up, section 19B is not attracted in the present case of petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
