1. Jessie Jonny is the director of Biryani Limited. While acting for the company, he becomes aware of a business opportunity and acquires a huge debt for doing the business by mortgaging the factory plot of the Company. The business is a big flop as the interest rates on which the loan was acquired was too high.

You are requested to advise Jhunjunwala , being a minority shareholder, who wants to go to court and challenge the act of Jessie Jonny of acquiring the loan.

He also wants to know the extent to which he would be liable to pay in case the bank wins and the assets of Biryani Limited are not enough to pay off the debts.