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2020 (1) TMI 1081 - HC - Companies LawLifting of corporate veil - recovery of debt - Personal liability of ex-director for the debt determined in favour of the first respondent, bank - the existence of a corporate borrower and the independent existence of its Directors, completely ignored - HELD THAT:- It is well settled that a Limited Company incorporated under the provisions of the Companies Act, 1956 has a separate and independent character and it is a juristic person in its own capacity - The Directors are entrusted with the responsibility of looking after the affairs of the Company as entrusted to them by the shareholders by adopting due procedure prescribed in the Articles of Association. Unless there is a separate contract, the Directors cannot be held personally liable, as has been done in the present case. We do not find any merit in the arguments advanced by the learned counsel for the first respondent Bank in this regard and, therefore, the learned Tribunals have failed to appreciate such legal distinction in the facts before them. The matter remanded back to the learned Debts Recovery Tribunal-I, Chennai, for deciding the Original Application of the first respondent Bank afresh in accordance with law - petition allowed by way of remand.
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