https://www.taxtmi.com/caselaws?id=753597 The Madras HC held that a penalty imposed on a company cannot be recovered from its former director in individual capacity. The court ruled that directors cannot be substituted for the company and no statutory provision exists for recovering company penalties from directors. Since the petitioner had resigned from directorship in 2011 with proper compliance under Companies Act 1956, the recovery order against him was quashed. The court directed implementation of the penalty order against other parties only, excluding the petitioner. en-us Tue, 02 Apr 2024 00:00:00 +0530 Thu, 06 Jun 2024 08:22:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753597 The Madras HC held that a penalty imposed on a company cannot be recovered from its former director in individual capacity. The court ruled that directors cannot be substituted for the company and no statutory provision exists for recovering company penalties from directors. Since the petitioner had resigned from directorship in 2011 with proper compliance under Companies Act 1956, the recovery order against him was quashed. The court directed implementation of the penalty order against other parties only, excluding the petitioner. Case-Laws Customs Tue, 02 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753597