The Supreme Court on Monday dismissed a plea by BJP MP Rajeev Chandrasekhar against the Karnataka HC's order that had declined to interfere with the directions against him to pay Rs 50 crore to IFCI Ltd.
A bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant rejected contention of senior advocate Mukul Rohatgi, representing the petitioner that he was neither a borrower nor a guarantor for the loan amount taken by a company.
A division bench of the High Court had on January 14, 2020, found no error or illegality in the order passed by the Debt Recovery Tribunal on July 20, 2018 that it was Chandrasekhar, who, being the director of Indian Paging Services Ltd, had signed all papers for obtaining the loan amount. His resignation from the post of director on January 10, 2001, would not absolve him of the liability, it had said.
Rohatgi, along with senior advocate Sajan Poovayya, contended that the petitioner was not a debtor.
“The HC says your liability will be co-extensive. It is true, I signed the loan document as a director of the company. When I resigned as director and it is accepted, there can't be any liability on me as a person since the loan was taken for the company,” the counsel said.
The bench, however, declined to interfere with the order.
“We see no reason to entertain this petition. Accordingly, the special leave petition is dismissed,” the bench said.
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