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september 2005

Supreme Court of India · 2005-09-26

P.C. Aggarwala vs Payment Of Wages Inspector, M.P. And Ors

Citation / case number
AIR 2006 SUPREME COURT 3576
Court
Supreme Court of India
Petitioner
P.C. Aggarwala
Respondent
Payment Of Wages Inspector, M.P. And Ors
Author
Arijit Pasayat
Bench
Arijit Pasayat, H.K. Sema

Judgment text excerpt

The Supreme Court upheld the Madhya Pradesh High Court's ruling that Directors of Jiyajirao Cotton Mills Ltd. are personally liable for wages under the Payment of Wages Act, 1936, while clarifying that recovery can only be made from assets acquired from the company's income, not from personal assets of the Directors. The Court emphasized that the alternative remedy under Section 17 of the Act must be exhausted before seeking writ relief. The judgment affirmed the liability of Directors while limiting the scope of asset recovery, thus balancing corporate and personal accountability.

P.C. Aggarwala vs Payment Of Wages Inspector, M.P. And Ors · Niyam