Case Note & Summary
The applicants, six directors of M/s Ruchi Soya Industries Ltd., filed an application under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of Criminal Case No. 123 of 2006 pending before the Judicial Magistrate, First Class, Dhule, arising out of a complaint filed by the Food Inspector, Rajaram Vaman Joshi, under the Prevention of Food Adulteration Act, 1954. The complaint alleged that a sample of 'Ruchi Gold' refined sunflower oil collected from a retailer was found adulterated. The applicants contended that they were merely directors and not involved in the day-to-day business of the company, and the complaint did not contain specific allegations against them. The State opposed the application, arguing that directors are vicariously liable. The High Court, after examining the complaint, found that it lacked specific averments that the applicants were in charge of and responsible for the conduct of the business at the time of the offence. Relying on the principle that vicarious liability of directors requires specific allegations, the court allowed the application and quashed the proceedings against the applicants.
Headnote
A) Criminal Law - Quashing of Criminal Proceedings - Prevention of Food Adulteration Act, 1954 - Section 17 - Vicarious Liability of Directors - The court considered whether directors can be held vicariously liable without specific allegations of their involvement in the day-to-day business or the alleged adulteration. Held that in the absence of specific averments that the directors were in charge of and responsible for the conduct of the business, the complaint against them is liable to be quashed (Paras 1-10).
Issue of Consideration
Whether criminal proceedings against directors of a company can be quashed when the complaint lacks specific allegations regarding their role in the alleged offence under the Prevention of Food Adulteration Act, 1954.
Final Decision
The application is allowed. Criminal Case No.123 of 2006 pending before the Judicial Magistrate, First Class, Dhule, is quashed and set aside against the applicants.
Law Points
- Criminal liability of directors under Prevention of Food Adulteration Act
- 1954
- vicarious liability
- requirement of specific averments
- quashing of criminal proceedings
