MAHESH KUMAR Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) With the consent of the parties, the case was heard finally.

(2.) The short point involved in the matter is that after issuance of the fresh certificate of incorporation under the Companies Act on 25.2.1994 the form of the Company was changed from Private Company to Limited Company, Therefore, for the dues of sales tax for the subsequent years from 1994-95 onwards, the Directors are not personally liable. The impugned recovery order has been issued against the Director without making any efforts of recovery against the Company.

(3.) Mr. Saxena submits that the change of name is the strategy adopted by the petitioners to escape the liability of Directors.