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Respected Sirs,

I would like to know , can a company be criminally procecuted in criminal matters just like in section 482 of CRPC Act.

Awaiting rply


 4 Replies

N.K.Assumi (Advocate)     21 April 2009


There are punishment, that is punishment with imprisonment and fine, imprisonment or fine, imprisonment as mandatory, which one do we adopt to a corporate a juristic person under the Indian Penal Code read with the General Clauses Act, 1872 and host of other acts like NDPS Act 1985, Prevention of Essential Commodities Act 1954, Trade marks Act, 1999 etc, etc.
Now, can we imprison the corporate? Or should we impose fine only in lieu of imprisonment? If the offence is punishable with imprisonment as mandatory, can we imprisoned the corporate a Juristic person? Or should we impose fine in lieu of mandatory imprisonment? This is the dilemma and both the Parliament and the law Commission should see into this Justice Dilema.
To continued with immunity for the corporate with criminal liability is not proper.
I am of the view that, Corporate criminal liability cannot be imposed without making corresponding legislative changes such as the imposition of fine in lieu of imprisonment. Till that is achieved. I am of the view  that we can not resort to section 482 CrPc to imprisoned the Corporate with criminal liability, as it would amount to colourable lgislation.

Swami Sadashiva Brahmendra Sar (Nil)     21 April 2009

s. 482 Cr.P.C. has no relevance to your query.

responsible officers of the company can be prosecuted  by lifting the corporate veil.

K.C.Suresh (Advocate)     22 April 2009

What Doctor said more clear.

Shashwat Shukla (Advocate)     22 April 2009

Dr. Tripathi is correct. Man may come man may go but the company can run forever. only responsible officers can be penalize not a company. 

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