TRISTAR CONSULTANTS Vs. CUSTOMER SERVICES INDIA PVT LTD

JUDGEMENT

(1.) A short question arises for consideration in the present revision petition.

(2.) The question is, under what circumstances and on what pleadings, a director of a company can be made liable in an action for recovery of damages alleging breach of contract by the company.

(3.) Petitioner filed a suit stating that Dinesh Mirchandani was carrying on business as the sole proprietor of the plaintiff. It was stated that the plaintiff is carrying on business of providing human resources facilitation by locating right candidates suitable for top level managerial positions. It was stated that defendant No. 1 represented through as also acting through Sanjay Kumar, its director, (Defendant No. 2) held personal meetings as also exchanged proposals through e-mails. It was stated that defendant No. 2 negotiated and concluded a written contract. As per the said contract, plaintiff was to identify and recommend to defendant No. 1, after interviewing, suitable candidates. Plaintiff did so but defendants cancelled the contract. It was stated that post cancellation of the contract, correspondence was exchanged between the parties to recompense an agreed sum to the plaintiff. This correspondence was exchanged between the plaintiff and Sanjay Kumar, the director of defendant No. 1. It was further stated that on behalf of defendant No. 1, Sanjay Kumar agreed to pay professional fee of Rs. 15 lacs, expenses incurred by the petitioner in sum of Rs. 1. 1 lacs, besides paying service tax. Alleging that the said agreement was not honoured, suit was filed seeking recovery of Rs. 11.61 lacs stated to be due and payable under invoices raised. Damages on account of breach of contract in sum of Rs. 6 lacs was claimed.