Case Note & Summary
The case involved an appeal by the Delhi Development Authority (DDA) against the acquittal of M/s Dhampur Alco Chem. Ltd. and its directors in a criminal case concerning violations of the Delhi Development Act, 1957. The DDA lodged a complaint alleging that the company and its directors used premises contrary to the sanctioned purpose. Following the trial, the company and two directors were convicted, while the remaining directors were acquitted. The DDA sought leave to appeal against the acquittal under Section 378(4) of the Code of Criminal Procedure, 1973, but the High Court denied this request. The Supreme Court, upon reviewing the case, found no legal error in the High Court's decision. The trial court had determined that the acquitted directors were not involved in the day-to-day management of the company, which was crucial for establishing vicarious liability under Section 32 of the Act, 1957. Consequently, the Supreme Court dismissed the appeal, affirming the High Court's ruling and the trial court's findings.
Headnote
A) Criminal Law - Leave to Appeal - High Court's Discretion - Section 378(4) Code of Criminal Procedure, 1973 - The High Court declined to grant leave to appeal against the acquittal of directors, finding no error in the trial court's judgment. The trial court found no evidence indicating the directors were in charge of the company's day-to-day affairs, leading to their acquittal. Held that the appeal was dismissed as there was no legal error in the High Court's decision (Paras 1-2).
Issue of Consideration
Whether the High Court erred in declining to grant leave to appeal against the acquittal of the directors.
Final Decision
The Supreme Court dismissed the appeal, finding no error in the High Court's decision to deny leave to appeal against the acquittal of the directors.
Law Points
- Vicarious liability
- leave to appeal
- acquittal
- prosecution of company
- error of law



