DEEPAK JOHRICHAND BHANDARI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs:-

(2.) By-now, this Court must have passed not less than ten orders on the question whether any private properties or individual bank accounts of a Director of a Company can be attached for the purpose of recovering the dues of the Company. We quote the judgments as under:-

(3.) This Court has made it very abundantly clear that Sec. -86 of the Act pertains to the offence by companies and contains certain provisions where for the offence of the company, every person who at the time the offence was committed was in-charge of, and was responsible to the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence. In essence, this provision makes the person in-charge of the company responsible for the offence vicariously liable for the criminal action, for which, the company may have been charged. However, when it comes to recovering the dues from the company towards liability incurred under the Act, the Department cannot proceed against the individual Director of the Company. It is not in dispute that the bank account is the personal account of the Director.