Private Company’s dues cannot be collected from its directors: SC

Shankar Rudra Vs State of Uttarakhand & Ors. (Supreme Court of India) Summary: In the case of Shankar Rudra v. State of Uttarakhand & Ors., the Supreme Court addressed the issue of whether tax dues of a private company can be recovered from its directors. The appellant, Shankar Rudra, a director of M/s. SLR Impex Private Limited, challenged a recovery notice issued for unpaid taxes under the Uttarakhand Value Added Tax (UVAT) Act for the assessment years 2014-2017. The Court held that the UVAT Act does not allow for the recovery of a company’s dues from its directors unless the c...