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.