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Can I take action against Directors of a Company in personal capacity


18-Dec-2023 (In Consumer Court Law)

I have entered into contract with a Builder/Promoter which is a Private Limited Company for Construction & Purchase of Flat. The full consideration has been paid and Sale Deed executed in my favour. The project is completed but the Builder is unable to deliver the flat as there is violation in sanctioned plan and there is a demolition notice. I understand that my legal rights are against the Private Limited Company and not against the Directors. The Directors have to take full responsibility for the violation. Can I sue against the Company and also Directors in personal capacity.

Answers (2)

Answer #1
564 votes
You have to sue the company only because it is an agreement between you and the builder's company only.
However, you can implead the Directors of the company as necessary party to the suit because it is the directors who organise and lead the company by their decisions resolved through board meetings.
The directors may be listed as 2nd respondents and so on in the proposed suit against the company.
Answer #2
536 votes
The violation of law is committed by the company. Hence, the company as well as the directors and others who are responsible for the day to day affairs of the company are liable to be prosecuted. If the offence is committed with the connivance of the directors they are also liable and they can be prosecuted along with the company.

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