Sunil Poddar & Ors vs Union Bank Of India

The Supreme Court held that the appellants, who were former directors of Adhunik Detergent Ltd., could not be held liable for the company's debts after their resignation, as per the principles of corporate liability under the Indian Companies Act, 1956. The Court emphasized that the liability of directors is contingent upon their status at the time of the debt's incurrence, and since the appellants had resigned prior to the loan default, they were not liable. The Court overturned the lower courts' decisions, allowing the appeal and dismissing the suit against the appellants.