Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2021 (10) TMI SC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2021 (10) TMI 49 - SC - Indian Laws


Issues Involved:
1. Legality of the High Court and Sessions Court's decision to quash the Magistrate's order summoning accused nos. 1 to 8.
2. Examination of whether a prima facie case was established against accused nos. 1 to 8.
3. Consideration of vicarious liability of corporate executives in criminal matters.

Detailed Analysis:

1. Legality of the High Court and Sessions Court's Decision to Quash the Magistrate's Order Summoning Accused Nos. 1 to 8:

The Supreme Court reviewed the High Court of Karnataka's decision, which upheld the Sessions Court's order quashing the Magistrate's summons against accused nos. 1 to 8. The original complainant had filed a private complaint alleging offenses under Sections 406, 418, 420, 427, 447, 506, and 120B read with Section 34 IPC, claiming that the accused had trespassed on his property, demolished a boundary wall, and caused significant damage. The Judicial Magistrate initially directed to register the case against all accused. However, the Sessions Court quashed the order against accused nos. 1 to 8, and the High Court upheld this decision. The Supreme Court examined whether this quashing was justified.

2. Examination of Whether a Prima Facie Case Was Established Against Accused Nos. 1 to 8:

The complainant argued that the learned Magistrate had issued the summons after examining the evidence and that the Sessions Court erred in setting aside this order. The Supreme Court noted that the complaint contained general allegations without specific details about the involvement of accused nos. 1 to 8, who were corporate executives stationed in Hyderabad and not present at the site. The Court emphasized that at the stage of summoning, a prima facie case should be established based on specific allegations and evidence. The Court found that the complaint lacked specific allegations and roles attributed to accused nos. 1 to 8, making the Magistrate's order unsustainable.

3. Consideration of Vicarious Liability of Corporate Executives in Criminal Matters:

The Supreme Court reiterated the principle that vicarious liability in criminal law requires specific statutory provisions or clear evidence of individual involvement. The Court referred to precedents, including *Sunil Bharti Mittal v. Central Bureau of Investigation* and *GHCL Employees Stock Option Trust v. India Infoline Limited*, which held that corporate executives cannot be held vicariously liable without specific allegations and evidence of their active role and criminal intent. The Court emphasized that summoning corporate executives is a serious matter and cannot be done based on general or vague allegations.

Conclusion:

The Supreme Court concluded that the High Court and Sessions Court were correct in quashing the Magistrate's order summoning accused nos. 1 to 8 due to the lack of specific allegations and evidence. The Court dismissed the appeals, allowing the complaint to proceed against the remaining accused (nos. 9 to 13) on its own merits. The judgment underscores the necessity for specific and detailed allegations when seeking to summon corporate executives in criminal cases.

 

 

 

 

Quick Updates:Latest Updates