JUDGMENT
1. Heard counsel for the parties.
2. The facts are that the petitioner was one of the directors in Allahabad Electronics (P.) Ltd.--a company incorporated under the Companies Act, 1956, engaged in the manufacture and sale of power and distribution of transformers. For the recovery of the dues outstanding against the company, the respondents proceeded against the personal assets of the petitioner. The contention of the petitioner is that the company is a separate legal entity and, therefore, no tax and other dues outstanding against the company can be realised from the personal assets of the petitioner. So far as this proposition is concerned, that cannot be disputed in law. In para. 15 of the counter-affidavit, the respondents simply averred that the petitioner is personally liable to pay arrears of sales tax outstanding against the company, because he happens to be one of the directors in the company, No law in support of such contention is shown by standing counsel. Rather, the settled law is that for the recovery of the dues outstanding against the company, the respondents cannot proceed against the personal assets of a director of the company, unless that is permitted by a specific provision of law or by an agreement between the parties.
3. In the result, the petition succeeds and is allowed, The respondents are restrained from realising arrears of tax outstanding against the company from the personal assets of the petitioner.