The court allowed this writ petition, holding that arrears of a company cannot be collected from its Managing Director. Consequently, the demand attachment notice against the petitioners personal properties was set aside.
Set aside the impugned demand/attachment notice dated 05.01.2010.
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.
HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO
WRIT PETITION No.6835 of 2010
Date: September 17, 2014
Between:
Gattu Nagabushana Rao. … Petitioner
And
1. Central Power Distribution of Andhra Pradesh Ltd., rep. by its Chairman & Managing Director, Hyderabad & another. … Respondents
HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO
WRIT PETITION No.6835 of 2010
O R D E R:
This writ petition was filed challenging the demand/attachment notice bearing D.No.47/2010, dated 05.01.2010, seeking to attach the personal properties of the petitioner against the outstanding dues of Rs.12,08,033/- towards HT.No.KNL 270 payable by M/s.G.N.Products Pvt. Ltd.
2. The papers filed along with the writ petition disclose that earlier a notice was issued to M/s. G.N.Products Pvt., Ltd., on 17.03.2004 demanding the said amount and also observing that the agreement would be terminated on 05.04.2003 in case the said amount was not paid.
3. The fact of the company committing default of an amount of Rs.12,08,033/- is not disputed by both the parties. But, the only point that remains for consideration is whether the said amount can be recovered from the Managing Director of the company or
not.
4. This issue is squarely covered by the decision of this Court in Dr. J. Ramachandra Rao V . A.P. Eastern Power Distribution Co. Ltd., Elur u[1] , wherein it was held that arrears of company cannot be collected from Managing Director and the respondent company is entitled to disconnect service connection of company alone.
5. Following the ratio decided in the said writ petition, this writ petition is allowed setting aside the impugned demand/attachment notice dated 05.01.2010. Pending miscellaneous petitions, if any, shall stand dismissed in consequence. No costs.
________________________________ A. RAMALINGESWARA RAO, J Date: September 17, 2014 BSB
45 HON’BLE SRI JUSTICE A. RAMALINGESWARA RAO
WRIT PETITION No.6835 of 2010
Date: September 17, 2014
BSB
2 issues framed by the court
Whether arrears of a company can be recovered from its Managing Director.
Whether a demand/attachment notice against the personal properties of the Managing Director is sustainable.
Colour shows how this judgement treated each authority
Dr. J. Ramachandra Rao V . A.P. Eastern Power Distribution Co. Ltd. & Ors.Relied on¶16
Dr. J. Ramachandra Rao V . A.P. Eastern Power Distribution Co. Ltd., Eluru
AIR 2009 Andhra Pradesh 19Referred
Gattu Nagabushana Rao
Central Power Distribution of Andhra Pradesh Ltd.
A. RAMALINGESWARA RAO
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
