The Directors being agents of the company the general principles of the law of principal and agent regulate the relationship of the company and its directors, In the present case the directors having actually received the loan amount on behalf of the company and they having imported second hand reconditioned used marine diesel engine in violation of the contract they are also liable along with the company for repayment of the loan as contended by the learned counsel for the Sangstha—He could not cite any authority to show that a director has been held liable for the debts of the company merely because he received the money as the agent of the company— Held: The learned counsel for the Sangstha having failed to establish any other legal basis of personal liability of the directors in the facts of the case as alleged, we are further of the view that their appeal was is liable to be allowed.

Dira Dockyard & Engineers Ltd. & Ors Vs. BSRS & Ors. 3BLT (AD)-207.