The court allowed applications by directors to be struck off the party array in two company suits, ruling that they cannot be held personally liable for company debts without a guarantee.
Defendants 2 and 3 struck off in the party array in C.S.Nos. 565 and 562 of 2015.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
A.Nos.514 and 518 of 2021 in C.S.No.555 of 2015 and A.Nos.515 and 520 of 2021 in C.S.No.562 of 2015
A.Nos.514 and 518 of 2021
in
C.S.No.555 of 2015 and
A.Nos.515 and 520 of 2021 in C.S.No.562 of 2015
R.SUBRAMANIAN, J.
These four applications have been filed by the defendants 2 and 3 in the above two suits viz., C.S.Nos.555 of 2015 and 562 of 2015 seeking to strike out the names from the array of the parties on the ground that they cannot be made personally liable for the debts of the Company.
2. It is seen from the array of the parties in the respective plaints that the 1st defendant is a limited Company and the defendants 2 and 3 are the Managing Director and Director of the said Company. There is no pleading in the plaint that the defendants 2 and 3 would be personally liable for the debts of the Company.
3. In the light of the same the defendants 2 and 3 cannot be made personally liable for the debts of the Company. There is no claim that they have guaranteed payment of debts of the Company.
4. Hence, these four applications are allowed and the defendants 2 and 3 are struck off in the party array in C.S.Nos.565 and 562 of 2015.
Page No.1/2 https://www.mhc.tn.gov.in/judis/
A.Nos.514 and 518 of 2021 in C.S.No.555 of 2015 and A.Nos.515 and 520 of 2021 in C.S.No.562 of 2015
R.SUBRAMANIAN, J.
dsa
opening the evidence and to recall the witness.
A.Nos.514 and 518 of 2021 in C.S.No.555 of 2015 and A.Nos.515 and 520 of 2021 in C.S.No.562 of 2015
Page No.2/2 https://www.mhc.tn.gov.in/judis/
Defendants 2 and 3
R.SUBRAMANIAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
