2007 (1) TMI 254

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....mited company incorporated under the Companies Act, 1956, under the certificate No. 12819 of 1986, amended on 13-11-1987. The company and its factory have been taken possession by the Tamil Nadu Industrial Investment Corporation under section 29 of the State Financial Corporations Act, 1951 and the company is no more in existence. Further, the petitioners have also resigned from the directorship on and from 18-6-1996 and 23-5-1996, respectively and to that effect resolution has been passed by the directors of the company. As such from that dates the petitioners ceased to be the directors of the company. All of a sudden, proceedings under section 8 of the Revenue Recovery Act has been issued against the petitioners. There is absolutely no pr....

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....on 19B of the Act, which provides for liability to tax private company on winding up, cannot be invoked. 5. In this regard, useful reference can be had to the decisions of various High Courts, which are as follows : In the case of Desiraju Venkatakrishna Sarma, In re [1955] 25 Comp. Cas. 32, the Andhra Pradesh High Court has, in similar circumstance, held that a company is a body corporate and can be made liable for payment of taxes in respect of taxes payable by it. There is no personal obligation on the shareholders or the directors of a limited company in respect of the debts, or the taxes, revenue, etc., due from the company. The managing director or other directors of a limited liability company cannot be proceeded against as reg....