Mumbai, July 13 -- A crucial ruling by the Bombay High Court, which declared that solo entrepreneurs operating One Person Companies (OPCs) generally cannot be held personally liable for company debts, could give a shot in the arm to entrepreneurship in India, experts said.

The 3 July judgement reinforces the legislative intent behind one person companies by ring-fencing the private assets of entrepreneurs from their business liabilities while also raising the bar for creditors attempting to pursue the founder's personal assets.

The ruling emerged from a dispute between Endemol India and Innovative Film Academy Pvt. Ltd, an OPC solely owned by Saravana Prasad. Endemol sought to recover over Rs.10 crore in unpaid dues from a production ag...