Recovery proceedings not to be initiated against the former director of the Company who was not the director during the concerned period

Last updated: 24 April 2024
Quick Summary
The Bombay High Court has ruled that recovery proceedings cannot be initiated against a former director of a company if they were not a director during the period in question. In this case, the court set aside an attachment order against a former director who had resigned and whose directorship was disqualified before the tax demand arose. The court emphasised that officials must verify if the individual was a director during the concerned period and provide an opportunity to be heard before attaching assets.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of Prasanna Kumar Shetty v. State of Maharashtra and Others [Writ Petition No. 3098 of 2024 dated April 16, 2024] allowed the writ petition and set aside the attachment order in case where recovery proceedings were initiated against the former director of the Company who was not the director of the Company during the concerned period.

Citation :
Writ Petition No. 3098 of 2024 dated April 16, 2024

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Bimal Jain
Published in GST
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