Managing Director not personally liable for company dues unless statute specifies

The High Court of Punjab and Haryana ruled in favor of the managing director of a company, holding that unless the statute specifically imposes personal liability on managing directors for company dues, they cannot be held responsible. The court referred to legal provisions and precedent, deeming the direction to recover wages from the managing director's personal property as illegal and quashing it. The court did not award any costs in this judgment.

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Issues involved: Impugning the direction to recover wages from the personal property of the managing director of a limited company.

Summary:
The High Court of Punjab and Haryana, in the case where the managing director of a company challenged the direction to recover workers' wages from his personal property, held that unless the statute specifically makes the managing director personally liable for company dues, he cannot be held responsible. The court referred to a Division Bench decision and noted the absence of any provision in company law or the Industrial Disputes Act imposing personal liability on managing directors. Consequently, the court deemed the direction to be illegal and quashed it, ruling in favor of the petitioner. No costs were awarded in this judgment.

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