IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 31245 of 2007(T)
1. N.RAJAMONY AMMA, W/O.LATE
... Petitioner
Vs
1. TAHSILDAR, TALUK OFFICE,
... Respondent
2. STATE OF KERALA, REPRESENTED BY
For Petitioner :SRI.ARIKKAT VIJAYAN MENON
For Respondent : No Appearance
The Hon'ble MR. Justice ANTONY DOMINIC
Dated :30/09/2009
O R D E R
ANTONY DOMINIC, J.
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W.P.(C) NO. 31245 OF 2007 (T)
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Dated this the 30th day of September, 2009
J U D G M E N T
Petitioner was the Director of a company by name M/s Janso
Soft Drinks Private Limited. She resigned from the Directorship of
the company w.e.f. 2/1/1987. Subsequently, on 14/9/07, by Ext.P1
notice issued under the provisions of the Revenue Recovery Act,
the property belonging to the petitioner was attached for realising
the dues of the company for the period 82-83 to 85-86 invoking
the provisions of Section 26C of the KGST Act.
2. The contention raised by the counsel for the petitioner
is that the said provision was introduced in the KGST Act only
w.e.f. 01/04/99 and therefore can have only prospective effect
and cannot be made use of to recover the previous liabilities
particularly when the petitioner had resigned from the
Directorship on 2/1/87.
3. Prior to the introduction of the said Section, this Court
has held in Punalur Paper Mills Ltd v. District Collector
(1985 KLT 758) and Nishad Patel v. State of Kerala (1998(2)
KLT 793) that the dues of a Company cannot be recovered from a
WPC 31245/07
:2 :
Director. Only in view of the provision contained in Section 26C
can a Director be made liable for the dues of the Company.
However, the same being prospective in nature, in the facts of
this Case, the section could not have been invoked against the
petitioner, who already ceased to be a Director of the Company as
early as on 2/1/87. This position is covered in favour of the
petitioner in view of the judgment in Kassim v.Sales Tax
Officer (2007(4) KLT 538).
4. In view of the above, Ext.P1 cannot be sustained and
therefore is quashed.
Writ petition is disposed of as above.
ANTONY DOMINIC, JUDGE
Rp