Case Law Analysis
|Karnataka High Court
Section 543 Companies Act 1956 | Directors Liable for Unexplained Bank Deposits Post-Winding Up: Karnataka HC Imposes Joint Liability for ₹66.14 Lakh
Karnataka High Court holds directors jointly and severally liable for unaccounted bank deposits of ₹66.14 lakh under Section 543 of the Companies Act 1956, emphasizing that failure to explain missing records triggers adverse inference. The ruling underscores directors' fiduciary duty to preserve financial records even after winding up, setting a precedent for stricter accountability in liquidation proceedings.