Directors Not automatically Liable for Company’s wrongful Acts Without Direct Involvement

Sanjay Dutt & Ors. Vs State of Haryana & Anr. (Supreme Court of India) Conclusion: High Court failed to examine whether the complaint, even if taken at face value, established the personal liability of the directors under the Punjab Land Preservation Act, 1900. Supreme Court ruled that before taking cognizance of such complaints, courts must carefully apply their minds to ensure that a prima facie case exists against the accused individuals. Held: High Court rejected the petition filed by the appellants herein invoking Section 482 of the Code of Criminal Procedure for the purpose of q...