Case Note & Summary
The judgment involves multiple criminal petitions filed under Section 482 of the Code of Criminal Procedure, 1973, by directors and managing directors of companies against whom criminal proceedings were initiated under the Legal Metrology Act, 2009. The petitioners sought to quash the proceedings on the ground that there were no specific allegations against them regarding their role in the alleged offences. The court examined the provisions of the Legal Metrology Act, 2009, particularly Sections 49 and 50, which deal with offences by companies and the liability of directors. The court noted that for a director to be held vicariously liable, there must be specific averments that the director was in charge of and responsible for the conduct of the business at the time of the offence. In the absence of such allegations, the proceedings against the directors would be an abuse of process. The court allowed the petitions and quashed the criminal proceedings against the petitioners.
Headnote
A) Criminal Law - Vicarious Liability of Directors - Legal Metrology Act, 2009 - Sections 49, 50 - Quashing of Proceedings - The court examined whether directors can be held vicariously liable for offences committed by the company under the Legal Metrology Act, 2009. Held that in the absence of specific averments that the directors were in charge of and responsible for the conduct of the business at the time of the offence, the proceedings against them are liable to be quashed as an abuse of process of court. (Paras 1-10)
B) Criminal Procedure Code, 1973 - Section 482 - Inherent Powers - Quashing of Criminal Proceedings - The court reiterated that the inherent power under Section 482 CrPC can be exercised to prevent abuse of process of court and to secure the ends of justice. Where the complaint does not disclose any offence against the petitioners, the proceedings can be quashed. (Paras 1-10)
Issue of Consideration
Whether the criminal proceedings against the petitioners (directors/managing directors) under the Legal Metrology Act, 2009 can be quashed for lack of specific allegations regarding their role in the alleged offences.
Final Decision
The court allowed the petitions and quashed the criminal proceedings against the petitioners.
Law Points
- Vicarious liability
- Directors' liability
- Legal Metrology Act
- 2009
- Section 482 CrPC
- Quashing of criminal proceedings
- Prima facie case
- Abuse of process of court
Case Details
2018 LawText (KAR) (07) 14
Criminal Petition No.8106/2013 and connected petitions
Sri Nataraj.R, Sri S.Rachaiah, Sri Sandesh J. Chouta
Mr. Leo Crasta, Mrs. Sylvia Crasta, Sri Viney Singh
State of Karnataka, Inspector of Legal Metrology
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Nature of Litigation
Criminal petitions under Section 482 CrPC seeking quashing of proceedings under the Legal Metrology Act, 2009.
Remedy Sought
Petitioners sought to set aside the order issuing process and quash the criminal proceedings initiated against them.
Filing Reason
Petitioners were directors/managing directors of companies against whom criminal proceedings were initiated for alleged offences under the Legal Metrology Act, 2009, without specific allegations of their involvement.
Previous Decisions
The trial court had issued process against the petitioners in various C.C. cases.
Issues
Whether the criminal proceedings against the petitioners can be quashed for lack of specific allegations regarding their role in the alleged offences under the Legal Metrology Act, 2009.
Submissions/Arguments
Petitioners argued that there were no specific averments that they were in charge of and responsible for the conduct of the business at the time of the offence, and thus they cannot be vicariously liable.
Respondent argued that the directors are liable for the acts of the company.
Ratio Decidendi
For a director to be held vicariously liable for an offence committed by a company under the Legal Metrology Act, 2009, there must be specific averments that the director was in charge of and responsible for the conduct of the business at the time of the offence. In the absence of such allegations, the proceedings are an abuse of process and liable to be quashed under Section 482 CrPC.
Judgment Excerpts
The court examined the provisions of the Legal Metrology Act, 2009, particularly Sections 49 and 50, which deal with offences by companies and the liability of directors.
In the absence of such allegations, the proceedings against the directors would be an abuse of process.
Procedural History
The petitioners filed criminal petitions under Section 482 CrPC challenging the order issuing process in various C.C. cases pending before the JMFC-II, Mangalore. The court heard all petitions together and disposed them by a common order.
Acts & Sections
- Code of Criminal Procedure, 1973: 482
- Legal Metrology Act, 2009: 49, 50
