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

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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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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5663_prasanna_kumar_shetty.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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