Case Note & Summary
The petitioners, who were directors of two companies (Food Creations Pvt. Ltd. and ITC Ltd.), filed writ petitions under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of a complaint filed by the Inspector of Legal Metrology, Bhadravathi Sub-Division, in C.C. No. 644/2013 pending before the Principal Civil Judge and JMFC, Bhadravathi. The complaint alleged violations under the Legal Metrology Act, 2009. The petitioners contended that the complaint did not contain any specific allegations that they were in charge of and responsible for the conduct of the business of the respective companies at the time of the alleged offence, which is a prerequisite for attracting vicarious criminal liability under Section 49 of the Legal Metrology Act, 2009. The court, after hearing the learned Senior Counsel for the petitioners and the learned SPP-II for the respondent, found that the complaint indeed lacked such essential averments. The court held that in the absence of allegations that the petitioners were in charge of and responsible for the conduct of business, the complaint did not disclose any offence against them. Consequently, the court allowed the writ petitions and quashed the complaint and all proceedings in C.C. No. 644/2013 insofar as they related to the petitioners.
Headnote
A) Criminal Law - Vicarious Liability of Directors - Quashing of Complaint - Legal Metrology Act, 2009, Section 49 - The court considered whether a complaint against directors of a company under the Legal Metrology Act, 2009 could be sustained without specific allegations that they were in charge of and responsible for the conduct of business at the time of the offence. Held that in the absence of such allegations, the complaint does not disclose any offence against the directors and is liable to be quashed. (Paras 2-4)
B) Criminal Procedure - Quashing of Proceedings - Section 482 Cr.P.C. - Articles 226 and 227 of Constitution of India - The court examined the power to quash criminal proceedings when the complaint does not make out any offence against the accused. Held that where the complaint lacks essential averments to attract vicarious liability, the proceedings are an abuse of process of law and must be quashed. (Paras 2-4)
Issue of Consideration
Whether the complaint filed under the Legal Metrology Act, 2009 against the directors of a company can be sustained in the absence of specific allegations that they were in charge of and responsible for the conduct of the business of the company at the time of the alleged offence.
Final Decision
The writ petitions are allowed. The complaint in C.C. No. 644/2013 and all proceedings therein are quashed insofar as they relate to the petitioners.
Law Points
- Criminal liability of directors
- vicarious liability
- quashing of complaint
- Legal Metrology Act
- 2009
- Section 49
- Section 482 Cr.P.C.
- Articles 226 and 227 of Constitution of India
Case Details
2018 LawText (KAR) (08) 22
Writ Petition Nos.10537-10538/2014 (GM-RES) and Writ Petition Nos.10539-10541/2014 (GM-RES)
Sri K. Kasturi, Sr. Counsel for Smt. K. Subha Ananthi, Advocate for petitioners; Sri I.S. Pramod Chandra, SPP-II for R1; Sri S.R. Dodawad, Adv. for Sri C. Shashikantha, ASG for R2
R. Panchapakesan, M.K. Dattaraj (in WP 10537-10538/2014); Y.C. Deveshwar, P.V. Dhobale, K.N. Grant (in WP 10539-10541/2014)
The Inspector of Legal Metrology, Bhadravathi Sub-Division; Union of India (in WP 10537-10538/2014); The Inspector of Legal Metrology (in WP 10539-10541/2014)
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Nature of Litigation
Criminal writ petitions seeking quashing of a complaint and proceedings under the Legal Metrology Act, 2009.
Remedy Sought
Quashing of complaint Annexure-H dated 17.12.2012 in C.C. No. 644/2013 and all proceedings therein.
Filing Reason
The petitioners, directors of two companies, were arraigned in a criminal complaint without specific allegations that they were in charge of and responsible for the conduct of business at the time of the offence.
Previous Decisions
The learned Principal Civil Judge and JMFC, Bhadravathi took cognizance of the complaint in C.C. No. 644/2013.
Issues
Whether the complaint under the Legal Metrology Act, 2009 against the directors can be sustained without specific allegations that they were in charge of and responsible for the conduct of business at the time of the offence.
Submissions/Arguments
Petitioners argued that the complaint does not contain any specific allegations that they were in charge of and responsible for the conduct of the business of the company at the time of the alleged offence, which is essential to attract vicarious liability under Section 49 of the Legal Metrology Act, 2009.
Respondent argued in support of the complaint.
Ratio Decidendi
For a director to be vicariously liable under Section 49 of the Legal Metrology Act, 2009, the complaint must contain specific allegations that the director was in charge of and responsible for the conduct of the business of the company at the time of the offence. In the absence of such allegations, the complaint does not disclose any offence against the director and is liable to be quashed.
Judgment Excerpts
As per the contentions of the petitioners in WP.Nos.10539-10541/2014, petitioner No.1 is the Chairman, petitioner No.2 is the Executive Director and petitioner No.3 is the Executive Director of M/s. ITC Limited.
The petitioners in these two writ petitions called in question the cognizance taken by the learned Principal Civil Judge and JMFC., Bhadravathi in CC.No.644/2013 and requested this Court to quash the proceedings.
In the complaint, there is no specific allegation that the petitioners were in charge of and responsible for the conduct of the business of the company at the time of the alleged offence.
Procedural History
The Inspector of Legal Metrology filed a complaint on 17.12.2012 which was registered as C.C. No. 644/2013 before the Principal Civil Judge and JMFC, Bhadravathi. The learned Magistrate took cognizance of the offence. The petitioners, being directors of the companies named in the complaint, filed writ petitions under Articles 226 and 227 of the Constitution of India read with Section 482 Cr.P.C. seeking quashing of the complaint and proceedings. The High Court heard the matter and passed the order on 30.08.2018.
Acts & Sections
- Legal Metrology Act, 2009: Section 49
- Code of Criminal Procedure, 1973: Section 482
- Constitution of India: Articles 226, 227
