Lawstreet Journal

Supreme Court States That Chairman, Directors Cant Be Held Vicariously Liable For Criminal Acts Of Company Without Specific Allegations

Lawstreet Journal 28 Sep 2021 8:06pm

Image courtesy: Lawstreet Journal Judiciary Supreme Court States That Chairman, Directors Cant Be Held Vicariously Liable For Criminal Acts Of Company Without Specific Allegations

On 27th September 2021, the Supreme Court in the case of Ravindranatha Bajpe v. Mangalore Special Economic Zone Ltd. held that the company officials like Chairman, Managing Director etc., cannot be held vicariously liable for the criminal offences committed by the company unless there are specific allegations against them which signify that they had an individual role in the activity.

CONTENTIONS OF THE PLAINTIFF 

The petitioner held that the accused have conspired with each other  to lay the pipeline under the property of the appellant without having any legal right and authority. 

Furthermore, the petitioner held that the accused had trespassed over the scheduled properties and even demolished the compound wall along with cutting the trees. 

It was contended by the petitioner that the accused had a common intention to destroy his property and therefore while laying the pipeline and demolishing the trees and compound wall on the scheduled properties they had committed criminal trespass and criminal damage. 

In the prayer, the petitioner held that the trial court should take cognizance against the accused, and should issue a process against the accused.

ORDER OF THE JUDICIAL MAGISTRATE, FIRST CLASS 

The Judicial Magistrate, first-class of Mangalore passes an order stating that cases should be registered against all the accused from accused 1 to 13, in which accused 1 and 6 were Companies and accused 2 to 5 and 7 to 13 were prominent officers or employees of the company. 

The cases were registered for the offences punishable under Section 427… Continue Reading...


Tagged: Supreme Court of India  
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