Case Note & Summary
The judgment involves multiple criminal petitions filed by directors of companies against whom proceedings were initiated under the Legal Metrology Act, 2009 for alleged violations. The petitioners, including Mr. Leo Crasta, Mrs. Sylvia Crasta, and Mr. Viney Singh, sought quashing of the criminal proceedings and the orders issuing process against them. The background is that the Inspector of Legal Metrology, Mangalore, filed complaints against the companies and their directors for offences under the Act. The petitioners argued that they were directors but not involved in the day-to-day operations, and there were no specific allegations against them. The court analyzed the provisions of the Legal Metrology Act, 2009, particularly Sections 49 and 50, which deal with offences by companies and vicarious liability of directors. The court noted that for a director to be held 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 cannot be sustained. The court also considered the principles under Section 482 of the Code of Criminal Procedure, 1973, for quashing proceedings to prevent abuse of process. The court allowed the petitions and quashed the criminal proceedings against the petitioners, holding that continuing the proceedings would be an abuse of process.
Headnote
A) Criminal Law - Vicarious Liability of Directors - Legal Metrology Act, 2009 - Sections 49, 50 - Quashing of Proceedings - The court considered whether directors can be held vicariously liable for offences under the Legal Metrology Act, 2009 without specific averments of their involvement. Held that in the absence of specific allegations 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. (Paras 10-15) B) Criminal Procedure - Quashing of Criminal Proceedings - Section 482 Code of Criminal Procedure, 1973 - Abuse of Process - The court held that continuing proceedings against directors without prima facie material showing their involvement would be an abuse of process of court. (Paras 16-18)
Issue of Consideration
Whether criminal proceedings against directors of a company under the Legal Metrology Act, 2009 can be sustained in the absence of specific allegations regarding their role in the commission of the offence.
Final Decision
The court allowed the petitions and quashed the criminal proceedings against the petitioners in all connected cases.
Law Points
- Vicarious liability
- Directors' liability
- Legal Metrology Act
- 2009
- Section 482 CrPC
- Quashing of criminal proceedings
- Strict liability offences
