Case Law Analysis
|Calcutta High Court
Board Resolutions Acknowledging Deferred MD Remuneration Create Enforceable Debt | Corporate Governance & Contractual Obligations : Calcutta HC
The Calcutta High Court ruled that when a company’s board formally acknowledges unpaid salary, perquisites, leave encashment, and gratuity owed to a Managing Director-even if voluntarily deferred-those amounts become legally enforceable debts. This sets a critical precedent for corporate accountability, ensuring that board resolutions can override informal deferrals and protect executive compensation rights under contract law.