High Court of Karnataka Quashes Criminal Proceedings Against Managing Director in Seeds Act Case — Lack of Vicarious Liability. Complaint under Section 6(a) read with Section 19(a) of Seeds Act, 1966 fails to disclose role of petitioner as Managing Director.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The petitioner, Rafel Del Riyo, Managing Director of Syngenta India Limited, filed a petition under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of proceedings in C.C. No. 7/2021 pending before the Senior Civil Judge & JMFC, Byadgi, Haveri District. The proceedings were initiated for offences punishable under Section 6(a) read with Section 19(a) of the Seeds Act, 1966. The complaint alleged that on 12-11-2020, a product manufactured by the petitioner was seized by the Agricultural Officer and Seeds Inspector. The petitioner contended that the complaint did not contain any specific allegations regarding his role as Managing Director or that he was responsible for the day-to-day affairs of the company. The High Court examined the complaint and found that it merely stated that the petitioner was the Managing Director without any averment that he was in charge of or responsible for the conduct of the business. Relying on the principle that vicarious liability cannot be imposed without specific statutory provision or factual basis, the court held that the proceedings against the petitioner were an abuse of process. The court quashed the complaint and all proceedings against the petitioner.

Headnote

A) Criminal Law - Vicarious Liability - Managing Director - Seeds Act, 1966, Sections 6(a) and 19(a) - Quashing of Complaint - The complaint did not contain any specific allegation that the petitioner, as Managing Director, was responsible for the day-to-day affairs of the company or that he had any role in the alleged seizure of seeds. Held that in the absence of such allegations, the proceedings against the petitioner are an abuse of process of law and liable to be quashed (Paras 5-7).

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Issue of Consideration

Whether criminal proceedings under the Seeds Act, 1966 can be sustained against the Managing Director of a company in the absence of specific allegations of his involvement in the alleged offence.

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Final Decision

The petition is allowed. The proceedings in C.C. No.7/2021 pending before the Senior Civil Judge & JMFC, Byadgi, Haveri District, including the summoning order dated 16.03.2021, are quashed.

Law Points

  • Vicarious liability
  • Criminal liability of directors
  • Seeds Act
  • 1966
  • Section 482 Cr.P.C.
  • Quashing of complaint
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Case Details

2022 LawText (KAR) (02) 18

Criminal Petition No.102512/2021

2022-02-08

M. Nagaprasanna

Hasmaith Pasha (Sr. Counsel for N.S. Kini), Ramesh Chigari (HCGP)

Rafel Del Riyo

The State of Karnataka

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Nature of Litigation

Criminal petition under Section 482 Cr.P.C. seeking quashing of complaint and summoning order in a case under the Seeds Act, 1966.

Remedy Sought

Petitioner sought quashing of C.C. No.7/2021 and summoning order dated 16.03.2021.

Filing Reason

Petitioner challenged the proceedings on the ground that the complaint did not disclose any specific role of the petitioner as Managing Director.

Previous Decisions

Trial court had taken cognizance and issued summons on 16.03.2021.

Issues

Whether the complaint under Seeds Act, 1966 can proceed against the Managing Director without specific allegations of his involvement.

Submissions/Arguments

Petitioner argued that the complaint lacks allegations that he was in charge of or responsible for the conduct of the business. Respondent argued that the petitioner being Managing Director is vicariously liable.

Ratio Decidendi

In the absence of specific allegations that the Managing Director was in charge of or responsible for the day-to-day affairs of the company, criminal proceedings cannot be sustained against him under the Seeds Act, 1966.

Judgment Excerpts

The complaint does not contain any allegation that the petitioner was in charge of and responsible for the conduct of the business of the company. In the absence of such allegations, the proceedings against the petitioner are an abuse of process of law.

Procedural History

Complaint filed by Agricultural Officer and Seeds Inspector on 12-11-2020; Trial court took cognizance and issued summons on 16-03-2021; Petitioner filed Criminal Petition No.102512/2021 under Section 482 Cr.P.C. before the High Court of Karnataka.

Acts & Sections

  • Seeds Act, 1966: 6(a), 19(a)
  • Code of Criminal Procedure, 1973: 482
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