https://www.taxtmi.com/caselaws?id=111234 A company is a separate juristic person and, in the ordinary course, a director acts only on its behalf, not as a conventional agent personally liable to third parties. Under Section 230 of the Indian Contract Act, 1872, an agent is not personally bound by contracts entered into for the principal unless there is a contract to the contrary. Personal liability of a director arises only if it is expressly undertaken, such as by guarantee or indemnity, or on an independent tort basis like fraudulent misrepresentation. In the pleaded facts, no such personal undertaking or legal basis was shown, so the director could not be impleaded for the company's contractual liability. en-us Mon, 05 Mar 2007 00:00:00 +0530 Sat, 21 Apr 2012 11:41:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111234 A company is a separate juristic person and, in the ordinary course, a director acts only on its behalf, not as a conventional agent personally liable to third parties. Under Section 230 of the Indian Contract Act, 1872, an agent is not personally bound by contracts entered into for the principal unless there is a contract to the contrary. Personal liability of a director arises only if it is expressly undertaken, such as by guarantee or indemnity, or on an independent tort basis like fraudulent misrepresentation. In the pleaded facts, no such personal undertaking or legal basis was shown, so the director could not be impleaded for the company's contractual liability. Case-Laws Companies Law Mon, 05 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111234