In case of industrial dispute against company, director is not personally liable to pay back-wages and no recovery certificate can be issued against him. - The Industrial Disputes Act, 1947
When award, in an industrial dispute, for back wages is against the company, recovery certificate for recovery of back wages against Director of the Company is not sustainable since the Director had no personal liability for the same. Doctrine of 'lifting for veil of corporate personality' is not attracted since back wages relates to day-to-day affairs of the Company for which Director is not liable.
-Sanjay Bansal vs. State U.P. and Others. 2019 (All. H.C.)
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