Delhi HIgh Court

Delhi Court: Directors' Personal Guarantees Bind Them to ITQ Technologies Lawsuit

Updated
Dec 1, 2025 7:10 PM
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A recent court decision from November 26, 2025, in New Delhi has denied Kewal Sadana and others' request to be removed from a lawsuit. The case involves Kewal Sadana and others against ITQ Technologies Pvt Ltd, with Judge Girish Kathpalia in charge.

Holiday Delay and Case Background

The hearing was initially postponed due to Guru Teg Bahadur’s Martyrdom Day on November 25, 2025. The people making the request, represented by Mr. Rakesh Patiyal, wanted to challenge an earlier decision from August 1, 2025, by a business court.

Petitioners' Argument

Kewal Sadana and the others argued they should not be part of the case because they were only directors and shareholders in the third company involved. They claimed the main deal was with the company itself, not them personally.

"The company’s separate identity can only be ignored in cases of wrongdoing," argued the petitioners.

Court's Consideration

Judge Kathpalia noted that the trial court had specific reasons for including the petitioners based on the details in the complaint. The court referred to a previous ruling in Tristar Consultants vs. V. Customers Services India Pvt. Ltd. to support this.

Personal Guarantees and Financial Responsibility

The court highlighted that the petitioners had given personal promises regarding a contract. They were said to have promised to cover the costs if the company failed, which involved an advance payment of Rs. 20,00,000.

Ruling

Judge Kathpalia found no reason to change the previous order, stating:

"Once a party has stated certain facts, they cannot be denied a chance to prove those facts."

The request and related applications were dismissed, upholding the trial court's decision.

Tags:
Commercial Dispute
Contract Law
Financial Fraud