Case Note & Summary
The applicants, TVS Motor Company Limited and its Directors, filed an application under Section 482 of the Criminal Procedure Code, 1973, seeking quashing of Summary Criminal Case No.109 of 2013 pending before the Judicial Magistrate First Class, Mohadi, for the offence punishable under Section 36(1) of the Legal Metrology Act, 2009. The case arose from a complaint by the Inspector of Legal Metrology, Tumsar Division, District Bhandara, alleging that a 'chain kit' sold by the company did not bear the mandatory declaration 'inclusive of all taxes'. The applicants contended that they could not be made vicariously liable merely because they were members of the Board of Directors, and that there were no specific allegations against them. The Senior Counsel for the applicants argued that the chain kit was not manufactured by the company but was a spurious article sold in the market. The Court, after hearing the parties, held that in the absence of any specific allegations of involvement, the Directors could not be prosecuted. The Court quashed the proceedings against applicant Nos.2 to 9, but allowed the trial to continue against applicant No.1, the company.
Headnote
A) Criminal Law - Vicarious Liability - Directors' Liability - Section 36(1) Legal Metrology Act, 2009 - Section 482 Criminal Procedure Code, 1973 - Quashing of Proceedings - The applicants, Directors of TVS Motor Company, sought quashing of criminal proceedings against them for alleged violation of Section 36(1) of the Legal Metrology Act, 2009, on the ground that there were no specific allegations against them. The Court held that vicarious liability cannot be imposed on Directors merely because they are members of the Board of Directors, in the absence of specific allegations of their involvement. The proceedings against applicant Nos.2 to 9 were quashed. (Paras 1-5)
Issue of Consideration
Whether the Directors of a Company can be prosecuted under Section 36(1) of the Legal Metrology Act, 2009, without any specific allegations of their involvement in the alleged offence, merely because they are members of the Board of Directors.
Final Decision
The Court quashed the proceedings against applicant Nos.2 to 9 (Directors) and allowed the trial to continue against applicant No.1 (the Company).
Law Points
- Vicarious liability
- Quashing of criminal proceedings
- Section 482 CrPC
- Legal Metrology Act
- 2009
- Section 36(1)
- Directors' liability
- Abuse of process
