JOJI PAUL Vs. DISTRICT COLLECTOR ERNAKULAM

JUDGEMENT

(1.) The petitioner was one of the Directors of Madurai Rubber Company Pvt. Ltd., a company registered under the Companies Act, 1956. The registered office of the company is in Tamil Nadu. It would appear that the company was liable to pay sales tax arrears to the tune of Rs. 27,18,490 under the Tamil Nadu General Sales Tax Act. Exhibit P5 requisition dated March 13, 2003 was issued by the Commercial Tax Officer, Tirupparankundram Circle, Madurai (third respondent) to the District Collector, Ernakulam for realisation of a sum of Rs. 27,18,490 from Madurai Rubber Company Pvt. Ltd., by taking recourse to revenue recovery proceedings. In Exhibit P5 requisition, it is also stated as follows :

(2.) The reliefs prayed for in the writ petition are the following :

(3.) Sri K. Jaju Babu, the learned counsel appearing for the petitioner, submitted that going by the requisition, the defaulter is the company. Recovery was sought to be made from the defaulter only. The petitioner is not the defaulter, but he is only a director of the defaulter-company. It is submitted that going by the decisions of this court, it is well-settled that a director of a company cannot be personally held responsible for the amount due from the company.