P C AGARWALA vs PAYMENT OF WAGES INSP.,M.P.

The Supreme Court upheld the Madhya Pradesh High Court's ruling that Directors of Jiyajirao Cotton Mills Ltd. are personally liable for wage payments to workmen 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 confirmed the liability of Directors while restricting the scope of asset recovery, thereby balancing the interests of workers and corporate governance.