Company tax dues cannot be recovered from a director's personal assets merely because of directorship.

Trade tax and other company dues cannot be recovered from a director's personal assets merely because of directorship. The Allahabad HC followed the settled principle that a private limited company is a separate legal entity, so recovery for company liabilities must proceed against the company's own assets and not against the director personally. Personal recovery from the petitioner was therefore impermissible, while recovery from the company's assets remained open.

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Issues: Whether arrears of trade tax and other dues of a private limited company could be recovered from the personal assets of its director.

Analysis: The petition concerned recovery of company dues from a director personally. The Court noted that the company was registered under the Companies Act, 1956 and followed the earlier view that recovery of tax dues of a company cannot be made from the personal assets of its directors merely because they are directors of the company.

Conclusion: Recovery from the petitioner's personal assets was held impermissible. The respondents were directed not to recover the company's arrears from the petitioner personally, while recovery from the company's assets remained open.

Ratio Decidendi: Dues of a company cannot be recovered from the personal assets of a director merely on account of his directorship; recovery must proceed against the company's own assets.

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