Topic
The Delhi HC held that a Section 34 petition is barred only if filed after 90 days from receipt of the award, not its date, and directors are liable only with a personal guarantee or fraud, clarifying limitation and narrowing director exposure in loan agreements.
The Himachal Pradesh High Court has ruled that directors of a company can be held liable under Section 138 of the Negotiable Instruments Act even if the company itself is not formally impleaded, provided the complaint contains specific allegations of their active control over operations and the directors participate in proceedings without challenging the omission. This clarifies that procedural technicalities cannot shield culpable individuals when the factual basis for their liability is clearly pleaded and unchallenged.
Madras High Court rules that directors of a company cannot be arrested in execution proceedings for a decree against the company without proper legal process and means inquiry under Order XXI CPC.