M.A.A.Annamalai vs State Of Karnataka & Anr

The Supreme Court held that a director who has resigned from a company is not liable for actions taken by the company after the resignation, as established under Section 420 IPC and the Money Circulation and Banning Act, 1978. The Court found that the appellant had resigned effective 27.12.1997, and thus could not be held responsible for the company's subsequent non-payment of dues. The Karnataka High Court's quashing of proceedings against the appellant was upheld, reinforcing the principle that liability ceases upon resignation.