https://www.taxtmi.com/caselaws?id=310531 A company remains a separate juristic person, so its debt does not automatically become the personal liability of its directors. Personal liability can arise only from an express guarantee, indemnity, or similar contractual assumption, or from fraud that is specifically pleaded and proved with particulars. Here, no pleading showed that the former directors had undertaken joint and several liability or personally promised repayment, and the fraud allegation lacked the required particulars. The decree against them was therefore unsustainable, and they were entitled to unconditional leave to defend. en-us Mon, 16 Aug 2010 00:00:00 +0530 Mon, 30 Oct 2023 13:03:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310531 A company remains a separate juristic person, so its debt does not automatically become the personal liability of its directors. Personal liability can arise only from an express guarantee, indemnity, or similar contractual assumption, or from fraud that is specifically pleaded and proved with particulars. Here, no pleading showed that the former directors had undertaken joint and several liability or personally promised repayment, and the fraud allegation lacked the required particulars. The decree against them was therefore unsustainable, and they were entitled to unconditional leave to defend. Case-Laws Companies Law Mon, 16 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310531