https://www.taxtmi.com/caselaws?id=775003 The Bombay HC partially allowed appeals challenging an arbitral tribunal's order requiring a Rs. 10.40 crore deposit and extensive disclosures. The HC set aside directions imposing personal obligations on an individual shareholder of a One Person Company (OPC), finding the arbitral tribunal failed to analyze why the shareholder should be treated as liable alongside the limited liability company. The court held that directing the shareholder to make deposits or provide personal asset disclosures was legally unsustainable and contrary to the Companies Act's fundamental policy governing OPCs, as it conflicted with limited liability principles. No prima facie case existed for personal liability against the shareholder merely for being the sole shareholder. However, the HC upheld obligations imposed on the company itself, including maintaining fixed deposits and asset disclosures, finding these directions reasonable and sustainable. en-us Thu, 03 Jul 2025 00:00:00 +0530 Fri, 18 Jul 2025 08:22:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775003 The Bombay HC partially allowed appeals challenging an arbitral tribunal's order requiring a Rs. 10.40 crore deposit and extensive disclosures. The HC set aside directions imposing personal obligations on an individual shareholder of a One Person Company (OPC), finding the arbitral tribunal failed to analyze why the shareholder should be treated as liable alongside the limited liability company. The court held that directing the shareholder to make deposits or provide personal asset disclosures was legally unsustainable and contrary to the Companies Act's fundamental policy governing OPCs, as it conflicted with limited liability principles. No prima facie case existed for personal liability against the shareholder merely for being the sole shareholder. However, the HC upheld obligations imposed on the company itself, including maintaining fixed deposits and asset disclosures, finding these directions reasonable and sustainable. Case-Laws Indian Laws Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775003