Non-executive director cannot be penalized for non-fulfilment of export obligations by company

Anand Mehta Vs Director General of Foreign Trade (Delhi High Court) Delhi High Court held that independent non-executive director cannot be held liable for non-fulfilment of export obligations by the company. Accordingly, penalty imposed on the director is liable to be set aside. Facts- A show cause notice dated 08.09.1992 was sent by the Respondent under Section 14 of the Foreign Trade (Development and Regulation) Act, 1992 [FTDR Act] to the Company including its Directors and the Petitioner for non-fulfilment of its export obligations under the FTDR Act. On 12.04.2007, the Respondent issued...