Chambers of Ishaan Garg
Ch. No. 217, Western Wing, District & Sessions Court, Tis Hazari, New Delhi, Delhi 110054
+91 8851742417, +91 8800386163
By applying the ratio laid down by this Court in the case of Sunil Bharti Mittal MANU/SC/0016/2015 : (2015) 4 SCC 609 it is clear that an individual either as a Director or a Managing Director or Chairman of the company can be made an Accused, along with the company, only if there is sufficient material to prove his active role coupled with the criminal intent. Further the criminal intent alleged must have direct nexus with the Accused. Further in the case of Maksud Saiyed v. State of Gujarat and Ors. MANU/SC/7923/2007 : (2008) 5 SCC 668 this Court has examined the vicarious liability of Directors for the charges levelled against the Company. In the aforesaid judgment this Court has held that, the Penal Code does not contain any provision for attaching vicarious liability on the part of the Managing Director or the Directors of the Company, when the Accused is a Company. It is held that vicarious liability of the Managing Director and Director would arise provided any provision exists in that behalf in the Statute. It is further held that Statutes indisputably must provide fixing such vicarious liability. It is also held that, even for the said purpose, it is obligatory on the part of the complainant to make requisite allegations which would attract the provisions constituting vicarious liability.
IN THE SUPREME COURT OF INDIA
Criminal Appeal No. 1263 of 2019
Decided On: 23.08.2019
Shiv Kumar Jatia Vs. State of NCT of Delhi
Hon'ble Judges/Coram:
Abhay Manohar Sapre and R. Subhash Reddy, JJ.
Citation: AIR 2019 SC 4463
1. Leave granted
