PUNJAB NATIONAL BANK LIMITED vs BIKRAM COTTON MILLS & ANR.

The Supreme Court held that the suit filed by the appellant bank against the company and its director R was not premature, as the determination of the 'ultimate balance' was necessary before the suit could be dismissed. The Court clarified that the binding obligation created under Section 391 of the Companies Act, 1956, does not affect the liability of the director under the bond executed. The Court remanded the case to the trial court for determining the ultimate balance due to the bank from the company, thus allowing the bank to claim the amount from both the company and R.