High Court rules in favor of director, quashes recovery proceedings for sales tax dues

The High Court of Karnataka ruled in favor of the petitioner, a director of a company, in a case challenging recovery proceedings for sales tax dues initiated against him personally. The court held that there was no provision allowing recovery from a company's director and quashed the proceedings. The respondents were directed to cease proceedings against the petitioner, who was also awarded costs and advocate's fee. The petition was allowed.

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The petitioner, a director of M/s. Hi-Precision Engineering Works, challenged recovery proceedings for sales tax dues initiated against him personally by the sales tax authorities. The High Court of Karnataka ruled that there is no provision authorizing recovery from a company's director and quashed the proceedings. Respondents were directed to refrain from proceeding against the petitioner, who was awarded costs and advocate's fee. Petition allowed.

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