The Supreme Court has ruled that a former director who has completed formal separation from a company’s management cannot be blacklisted for unpaid loans. The verdict came in a dispute involving Nepal Plastron Industries. Justices Hari Prasad Phuyal and Sunil Kumar Pokharel held that imposing liability on a director who sold their shares prior to the loan issuance is unjust. The ruling emphasized that blacklisting without due process amounts to “civil death” and violates natural justice.
