Company acquitted, director can not be convicted.
Querist :
Anonymous
(Querist) 04 December 2011
This query is : Resolved
X initiated cheque bounce case on Y the company and Z the Director?
The trial court acquitted Y the company and convicted Z the Director.
Now the case is in the appellate court, the defence of Z is Company acquitted, Director can not be convicted.
Citation : Company acquitted, Director can not be convicted.
Anil Hada v. Indian Acrylic Limited [2000] 23 SCL 240, 2000 AIR SC 145.
No doubt a finding that the offence was committed by the company is sine qua non for convicting those other persons.
Learned experts please give your views on the above defence. If you could provide additional case laws which throw more light on the issue, I will be very happy.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 04 December 2011
It depends on the pleadings and stand taken by the complainant.Since issuer of cheque for the liability of other can be convicted.
M/s. Y-not legal services
(Expert) 04 December 2011
with out knowing the complaint and true facts we can not give opinion regard this..
prabhakar singh
(Expert) 05 December 2011
One supreme court judgement is sufficient to support your case.With out going through a brief we can not form opinion at such stages of a case.
Guest
(Expert) 05 December 2011
You should know that a company is an artificial person in law and is represented by its directors, and for any offence on behalf of the company, only company directrors can be held responsible, not the company.
Querist :
Anonymous
(Querist) 05 December 2011
Mr.Dhingra,
I accept your version, that the company can not be imprisoned just because it is only a artificial person.
The supreme court says, there should be a findings that the company had committed offense, then only the directors can be convicted.
If the company is acquitted, how the director can be convicted. The relationship is master and servant, principal and agent.
Guest
(Expert) 05 December 2011
Dear Anonymous,
On the face of your question I have replied your question and that position is correct in law, which you also agree.
About your supplementary query, when in your own words you say, "there should be a findings that the company had committed offense," but you don't provide any background on the basis of which the company is exonerated and director is convicted, do you feel that any of the experts can analyse the background to provide you some solution merely on hypothetical basis?
Shonee Kapoor
(Expert) 05 December 2011
I agree with Mr. Dhingra,
W/o case details such advise can not be given.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
