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Supreme Court of India

SANJAY DUTT & ORS.versusTHE STATE OF HARYANA & ANR.

Citation
2025 INSC 34
Decided
1 January 2025
Disposal
Appeal(s) allowed

Holding

Vicarious liability of directors cannot be imposed under the Punjab Land Preservation Act, 1900 absent a specific statutory provision, and the complaint failed to allege personal involvement, warranting its quashment.

Summary

The Range Forest Officer alleged that the directors and office bearers of a company illegally uprooted trees using a JCB, violating Section 4 of the Punjab Land Preservation Act, 1900, and sought prosecution under Section 19. The Special Environment Court took cognizance of the complaint and issued process against the three appellants. The appellants contended that only the company, not the individual directors, could be liable, arguing the absence of any statutory provision for vicarious liability. The Supreme Court held that the Act does not impose vicarious liability on directors unless the statute expressly provides for it and that the complaint lacked specific averments linking the appellants personally to the offence. Consequently, the Court quashed the complaint and allowed the appeal, directing that any action against the company itself must be pursued separately.

Issues considered

  • Whether the complaint under the Punjab Land Preservation Act, 1900 discloses a prima facie case of offence against the individual directors and office bearers.
  • Whether vicarious liability can be attached to directors of a company for offences committed by the company’s employees under the Act.
  • Whether the statute provides for vicarious liability of officers of a company in criminal prosecutions.

Legislation cited

Subjects

Vicarious LiabilityDirectorsPersonal CapacityWrongful act of employeesCriminal Liability of officer of companySpecific Provision in StatuteCriminal IntentSpecific Act

Judgment

           [2025] 1 S.C.R. 446 : 2025 INSC 34

                   Sanjay Dutt & Ors.
                            v.
               The State of Haryana & Anr.
               (Criminal Appeal No. 11 of 2025)
                       02 January 2025
       [J.B. Pardiwala and R. Mahadevan, JJ.]


                    Issue for Consideration
According to the Range Forest Officer, the appellants (director and
office bearers of the company) had illegally uprooted trees with
JCB, destroyed them, and violated the section 4 of the Punjab Land
Preservation Act, 1900. The question that arises for consideration
is whether vicarious liability that can be attached to any of the
directors or any office bearers of the company.

                           Headnotes†
Punjab Land Preservation Act, 1900 – s.4 r/w. s.19 –
A license/necessary permission for development of the land
in the specified area was granted in favour of a company –
Complaint lodged by the Range Forest Officer – It was
alleged that the appellants (director and office bearers of the
company) had illegally uprooted trees and violated provisions
of the Act, 1900 – The Presiding officer-cum-JMIC, Special
Environment Court took cognizance of the complaint and
issued process for the offence punishable u/s.19 of the
Act, 1900 – Correctness:
Held: In the Scheme of the Act, 1900, there is no vicarious
liability that can be attached to any of the directors or any
office bearers of the company – It is the individual liability or
the act that would make the person concerned liable for being
prosecuted for the offence punishable u/s.19 of the Act, 1900 –
Having regard to the nature of the allegations, it is difficult to
take the view that the appellants herein are responsible for
the alleged offence – There are no allegations worth the name
in the complaint that the three appellants herein are directly
responsible for uprooting of the trees with the aid of Bulldozers
or JCB machines or causing damage to the environment – The
[2025] 1 S.C.R.                                                               447

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


     persons who were actually found at the site felling the trees
     have not been arrayed as accused in the complaint – Although
     the license/necessary permission for development of the land in
     the specified area had been granted in favour of the company,
     yet for the reasons best known to the complainant the company
     has not been arrayed as an accused in the complaint – While
     a company may be held liable for the wrongful acts of its
     employees, the liability of its directors is not automatic – It
     depends on specific circumstances, particularly the interplay
     between the director’s personal actions and the company’s
     responsibilities – A director may be vicariously liable only if the
     company itself is liable in the first place and if such director
     personally acted in a manner that directly connects their conduct
     to the company’s liability – Mere authorization of an act at the
     behest of the company or the exercise of a supervisory role
     over certain actions or activities of the company is not enough
     to render a director vicariously liable – In the instant case, the
     allegations which find place against the appellants herein in their
     personal capacity are absolutely vague – No case could be said
     to have been made out for putting the three appellants to trial
     for the alleged offence – The Court concerned could not have
     issued process for the alleged offence – Thus, the impugned
     complaint and order taking cognizance of the said complaint is
     hereby quashed. [Paras 10, 11, 18]

     Principle – Vicarious Liability – Provision in statute –
     Requirement of:
     Held: It is the cardinal principle of criminal jurisprudence that there
     is no vicarious liability unless the statute specifically provides
     so – Thus, an individual who has perpetrated the commission
     of an offence on behalf of a company can be made an accused,
     if the statute provides for such liability and if there is sufficient
     evidence of his active role coupled with criminal intent – The
     primary responsibility is on the complainant to make specific
     averments as are required under the law in the complaint so as
     to make the accused vicariously liable – For fastening criminal
     liability on an officer of a company, there is no presumption
     that every officer of a company knows about the transaction in
     question. [Para 13]
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                               Case Law Cited
       Maharashtra State Electricity Distribution Company Limited
       and Anr. v. Datar Switchgear Limited and Ors. [2018] 1 SCR 733 :
       (2010) 10 SCC 479 – referred to.

                                  List of Acts
       Punjab Land Preservation Act, 1900; Code of Criminal Procedure,
       1973.

                               List of Keywords
       Vicarious Liability; Directors; Personal Capacity; Wrongful act
       of employees; Criminal Liability of officer of company; Specific
       Provision in Statute; Criminal Intent; Specific Act.

                              Case Arising From
       CRIMINAL APPELLATE JURISDICTION: Criminal Appeal
       No. 11 of 2025
       From the Judgment and Order dated 08.12.2022 of the High Court
       of Punjab & Haryana at Chandigarh in CRMM No. 55268 of 2022

                           Appearances for Parties
       Ms. Meenakshi Arora, Sr. Adv., Sumesh Malhotra, Vikas Singh,
       Pawan Bhardwaj, Jayesh Yadav, Yashvi, Ms. Russai Sidhu,
       Ms. Chitra Singh, Lokesh Kumar Choudhary, Advs. for the Appellants.
       Akshay Amritanshu, Ms. Drishti Saraf, Ms. Pragya Upadhyay,
       Ms. Swati Mishra, Advs. for the Respondents.

                  Judgment / Order of the Supreme Court

                                     Order

1.     Leave granted.
2.     This appeal arises from the judgment and order passed
       by the High Court of Punjab and Haryana at Chandigarh dated
       08-12-2022 in CRMM No.55268 of 2022 by which the High
       Court rejected the petition filed by the appellants herein invoking
       Section 482 of the Code of Criminal Procedure for the purpose of
[2025] 1 S.C.R.                                                      449

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


     quashing of complaint no. 41 of 2022 lodged by the Range Forest
     Officer for the alleged offence under Section 4 of the Punjab Land
     Preservation Act, 1900 (for short “the Act, 1900”) punishable under
     Section 19 of the Act, 1900.
3.   We have heard Ms. Meenakshi Arora, the learned senior counsel
     appearing for the appellants and Mr. Akshay Amritanshu, the learned
     counsel appearing for the respondents.
4.   The short point that falls for our consideration is whether the plain
     reading of the complaint lodged by the Range Forest Officer discloses
     commission of any offence alleged to have been committed under
     Section 4 read with Section 19 of the Act, 1900.
5.   The complaint reads thus:-
                                                 “PC No.1G/2022-23
                                                     Case No.41/22
                                                            7-9-22
            IN THE COURT OF HON’BLE PRESIDING OFFICER
                SPECIAL ENVIRONMENT COURT, FARIDABAD
           IN THE MATTER OF
           Range Forest Officer Gurugram           …….Applicants
                                      Vs.
           (1)   Satpal Singh Project Manager
           (2)   Kamal Sehgal General Manager
           (3)   Sanjay Dutt Director, Sec-113
                 Bajgera Gurugram
                                                  …….Respondents
                                    INDEX

            S.No.                Particular              Page No.
            1.      Report of Forest etc.                1-2
            2.      Notice issued to Forest Criminals    3-4
            3.      Form No.21                           5-6
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       4.        Form No.22                                      7-8
       5.        Notification                                    9-10
       6.        Statement of Forest Guard                       11-12
       7.        Statement of Forest Inspector                   13-14
       8.        Site plan of Forest crime scene                 15-16
       9.        Reply of forest criminal                        17-19

       xxxx			xxxx			xxxx			xxxx


                                                   Sd/-
                                                   Range Forest Officer,
                                                   Gurugram
                                                   Forest Crime Report
              Forest Department, Government of Haryana
       FOR Book No.0495                                       FOR No.079

       Forest Division              Gurugram

       Range/Bloc/Beat              Gurugram/Mullanpur/Jhadsa

       Reach/Name of the place      Sec-113-Gate vida GGM

       FOR No. (Date, Day &         079/10495-02/09/2021
       Time)

       Name of the report issuing   Hansraj
       officer

       Source of information about Self patrolling/informer/complaint
       the crime

       Date/Day/Time of the
       commission of the crime

       Name and designation of      Sh. Virender Kumar Sr. Inspector
       the Investigating Officer

       Description of the crime/    No/If yes then No.
       incident

       Act violated                 Section

       Indian Forest Act, 1927
[2025] 1 S.C.R.                                                                           451

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.



           Wild Life (Protection) Act,
           1972

           Punjab Land Conservation       Sec-4
           Act, 1900

           Indian Penal Code

           Description of       Name      Father’s           Age    Caste     Address
           criminal                        Name

                               (1)        Project Sec-113, Gate Vida Bajgeda
                               Satpal     Manager Gurugram
                               Singh

                               (2)        General
                               Kamal      Manager
                               Sehgal

                               (3)        Director
                               Sanjay
                               Dutt

                               Description of confiscated articles

           Details of          Type       Type/         Numbers Dead        Compensation
           confiscated                    Size                              amount
           forest produce
                               (1) Kikkar =7 (iv) (3) ________small plants = 62

                               (2) Kikkar = 5 (iv) (4) _________ (iv) = 46

                                               (5) ,, ,, (v) = 72

                                               (6) Misc. (u/s) = 126

           Details of          Type       Regd.         Color       Model Manufacture
           vehicle seized                 No.                             date

                               xxxxx                        Total=ABSTRFC

                               xxxxxx     U/s           V           IV      Total

                                          --            7           5       12

                                          126           72          46      244

                               Total      126           79          51      256

           Tools/ Weapons      xxxxxx     xxxxxx        xxxxxx      xxxxx xxxxxx

           Others, if any      xxxxxx     xxxxxx        xxxxxx      xxxxx xxxxxx

           Mark the correct    xxxxxx     xxxxxx        xxxxxx      xxxxx xxxxxx
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        Signature of Informer/           Beat Incharge
        Complainant/ Witness
                                         Sd/-
        Sd/-

        Signature/Thumb Impression of    F.R.O.
        accused
                                         Name

                                         Rank

                                         Dated



       PC No.1G/2022-23
                                                    Notice No.219.G
                                                    Dated: 2/9/2021
                                      Notice
                           Indian Forest Act, 1900 Sec-4

       Name :       (1) Satpal Singh Project Manager
       Address: (2) Kamal Sehgal General Manager
                    (3) Sanjay Dutt Director,
                        Sec-113, Gate Vida
                        Bajgera Gurugram

       Forest Damage Report No.079/495 has been received
       against you. Due to the forest crime committed by you,
       the environment has been harmed. According to damage
       report you have illegally uprooted trees situated in the area
       of Sec-113 Gate Vida, Gurugram, with JCB, destroyed
       them, and have violated the Sec-4 of the Indian Forest Act
       PLPA, 1900. You are hereby informed through this notice
       that you should appear before the undersigned on or before
       7-9-2021 and explain your position that why a complaint
       should not be filed against you in the Environment Court,
       Faridabad as per the above said Indian Forest Act.
                                         Forest Block Officer
                                         Forest Area: Sultanpur
                                         Range: Gurugram
[2025] 1 S.C.R.                                                           453

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


           PC No.1G/2022-23

            Case No…… Description of incident Range…. Police
                         Station….District

            1                   2                     3


            Name and            Regarding which       Description of
            address of          matter                statement, which
            witnesses                                 the witnesses
                                                      have hope for.
            Hansaraj Sr. I      According to          (1) Forest Guard
            I/C Gurugram        FOR No.79/495,        will depose
            and Jhadsa          the accused           according to FOR
            Beat                have committed
                                                      (2) Forest
                                violation of
            Virender Singh                            Inspector will
                                Section 4 of the
            I/C Sultanpur                             depose according
                                PLPA, 1900 by
            Block                                     to FOR
                                uprooting 256
            Forest Officer      trees of Kikkar-      (3) Forest Officer
            I/C Gurugram        and xxxx and 62       will depose
            Range               plants of xxxxx       according to FOR
                                with JCB from
                                Sec-113, Gate
                                Vida, Gurugram.
            No.I Description of case, which is to be written on all
            Sd/-
            Sd/-

             Notification issued under Section 4 of the Act, 1900
                             Government of Haryana
                                Forest Department
                                       Order
                             Dated, January 4, 2013
           No.S.O.8/P.A.2/1900/S.4/2013-Whereas the Governor
           of Haryana is satisfied after due inquiry, that for the
           purpose of giving effect to the provisions of the Punjab
           Land Preservation Act, 1900 (Punjab Act 2 of 1900), the
           regulations, the conditions and the prohibition set out
           hereinafter are necessary.
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       Therefore, now, in exercise of the powers conferred under
       Section 4 of the above said Act, the Governor of Haryana,
       hereby in the Schedule given below, specifically prohibits
       the following works in the specified areas, for a period
       of fifteen years from the date of publication of this Order
       in the Official Gazette, which has been notified under
       Section 3 of the above said rule by the Government of
       Haryana, Forest Department vide Notification No. S.O.81/
       P.A.2/1900/S.3/2012 dated 19th December, 2012.
       a.     The cutting of trees or timber other than Safeda,
              Popular, Bacain, Bass, Toot and Alanthak, and the
              collection or removal of flowers, fruits and any produce
              of different forest, except for the actual domestic or any
              manufacturing process. Provided that the land owner
              may sell trees or timber after obtaining a permit from
              the concerned Divisional Officer before doing so. Such
              permit shall prescribe such conditions for any sale as
              may be deemed necessary from time to time in the
              interest of forest conservation and 11 state farmers
              will be free to sell their trees to any person/Agency/
              Haryana and Development Corporation Limited at
              their will. So as to enable them to get remunerative
              price for their produce, provided that the land owner
              may sell their trees after obtaining permission to do
              so from the concerned Divisional Forest Officer.
                            P.C. No.1G/2022-23
                                                      FOR No.79/495
                                                      Dated 2-9-2021
                        Statement of Forest Guard
       Sir,
       The spot was inspected. The accused has uprooted the
       tress standing on the inspected spot through JCB, the dt.
       of which has been recorded.
                                                      Sd/-
                                                      Sd/-
[2025] 1 S.C.R.                                                         455

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


                        Certified to be true translation
                                   Advocate
           P.C. No.1G/2022-23
                                                     FOR No.79/495
                                                     Dated 2-9-2021
                        Statement of Forest Inspector
           Sir,
           I do hereby solemnly affirm that upon receiving FOR
           No.79/495 dated 2-9-2021, the spot was inspected.
           Wherein on the spot at Sec-113, Gate Vida, Bajgera,
           Kikkar and different types of trees were found to be
           uprooted with the JCB and small plants of different types
           were destroyed. According to FOR, the damage is found
           to be correct. The accused were issued notice for violating
           Section 4 of the PLPA, 1900. But the accused did not give
           any satisfactory answer. In this FOR, after preparing PC
           case of the accused, the same was given to Forest Range
           Office, Gurugram for presenting before the Environment
           Court, Faridabad. This is my statement
                                                                 Sd/-
6.   It appears from the materials on record that the Presiding Officer-
     cum-JMIC, Special Environment Court Faridabad took cognizance of
     the complaint, referred to above and issued process for the offence
     punishable under Section 19 of the Act, 1900. The order issuing
     process reads: -
           “DFO Vs Satpal etc
           Present Sh Gordhan Das, Forester; Gurugram on behalf
           of the complainant
           Heard on the point of summoning of accused In the challan
           and the documents attached thereto, it is alleged by the
           complainant that on 02.09.2021, in the area of sector 113
           Gate Vida Gurugram, (this area has been notified under the
           Forest Act, so, same belongs to the Forest Department),
           the accused destroyed 256 trees using JCB It is also
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            claimed by the complainant that the illegal act committed
            by the above named accused, has caused a loss to the
            tune of Rs 90580/- (Rupees Ninty Thousand Five Hundred
            Eighty Only) to the Forest Department.
            In view of the allegations leveled against the accused in
            the challan and perusal of original documents appended
            herewith, this court is of the opinion that a prima-facie
            case is made out against the accused for indulging in said
            illegal activity which led to the commission of an offence,
            punishable u/s 19 of the Punjab Land Preservation Act,
            1900.
            Accordingly, accused is hereby ordered to be summoned
            on 07.09.2022 and same is directed to appear in person
            in the court.
                                               (Seema)
                                               PO Spl Env Court,
                                               Faridabad UID HR0387
                                               02.05.2022”
7.     We are informed that the aforesaid complaint bearing CIS
       No.COMA-134-2024 has now been transferred to the district Court
       of Judicial Magistrate-1st Class, Gurugram.
8.     It is not in dispute that so far as the appellant no.1 is concerned he
       is the Managing Director and Chief Executive Officer of a company
       namely TATA Realty and Infrastructure Limited and Tata Housing
       Development Co. Ltd. So far as the appellant no.2 is concerned,
       he at the relevant point of time was the General Manager and is
       currently the Assistant Vice President of Tata Realty and Infrastructure
       Limited in its Corporate Relations Group and so far as the appellant
       no.3 is concerned he at the relevant point of time was the erstwhile
       employee/Senior Manager of the company namely ‘Sector 113
       Gatevida Developers Private Limited’ (formerly known as Lemon
       Tree and Developers Private).

       Relevant Provisions of Law:
9.     Section 4 of the Act, 1900 reads thus:-
            “4. Power to regulate, restrict or prohibit, by general or
            special order, within notified areas, certain matters.— In
[2025] 1 S.C.R.                                                              457

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


           respect of areas notified under section 3 generally or
           the whole or any part of any such area, the Provincial
           Government] may, by general or special order temporarily
           regulate, restrict or prohibit—
           (a) the clearing or breaking up or cultivating of land not
           ordinarily under cultivation prior to the publication of the
           notification under section 3;
           (b) the quarrying of stone or the burning of lime at places
           where such stone or lime had not ordinarily been so
           quarried or burnt prior to the publication of the notification
           under section 3;
           (c) the cutting of trees or timber, or the collection or removal
           or subjection to any manufacturing process, otherwise than
           as described in clause (b) of this sub-section of any forest-
           produce other than grass, save for bonafide domestic or
           agricultural purposes [of rightholder in such area];
           (d) the setting on fire of trees, timber or forest produce;
           (e) the admission, herding, pasturing or retention of
           sheep,[goats or camels];
           (f) the examination of forest-produce passing out of any
           such area; and
           (g) the granting of permits to the inhabitants of towns and
           villages situate within the limits or in the vicinity of any
           such area, to take any tree, timber or forest produce for
           their own use therefrom, or to pasture sheep,[goats or
           camels] or to cultivate or erect buildings therein and the
           production and return of such permits by such persons.”
     Section 19 of the Act, 1900 reads thus:-
           “19. Penalty for offences.— Any person who, within the
           limits of any area notified under section 3, commits any
           breach of any regulation made, [restriction or prohibition
           imposed, order passed or requisition made under sections
           4, 5, 5-A, or 7-A] shall be punished with imprisonment
           for a term which may extend to one month, or with a fine
           which may extend to one hundred rupees, or with both”
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10. We take notice of the fact that having regard to the Scheme of
    the Act, 1900, there is no vicarious liability that can be attached to
    any of the directors or any office bearers of the company. It is the
    individual liability or the act that would make the person concerned
    liable for being prosecuted for the offence punishable under Section
    19 of the Act, 1900. Having regard to the nature of the allegations,
    it is difficult for us to take the view that the appellants herein are
    responsible for the alleged offence. There are no allegations worth
    the name in the complaint that the three appellants before us are
    directly responsible for uprooting of the trees with the aid of Bulldozers
    or JCB machines or causing damage to the environment. The
    persons who were actually found at the site felling the trees have
    not been arrayed as accused in the complaint. Although the license
    / necessary permission for development of the land in the specified
    area had been granted in favour of the company, yet for the reasons
    best known to the complainant the company has not been arrayed
    as an accused in the complaint.
11. It appears that the Courts below proceeded on the erroneous
    assumption that the three appellants herein being responsible officers
    of the company are liable for the alleged offence. While a company
    may be held liable for the wrongful acts of its employees, the liability
    of its directors is not automatic. It depends on specific circumstances,
    particularly the interplay between the director’s personal actions
    and the company’s responsibilities. A director may be vicariously
    liable only if the company itself is liable in the first place and if such
    director personally acted in a manner that directly connects their
    conduct to the company’s liability. Mere authorization of an act at
    the behest of the company or the exercise of a supervisory role
    over certain actions or activities of the company is not enough to
    render a director vicariously liable. There must exist something to
    show that such actions of the director stemmed from their personal
    involvement and arose from actions or conduct falling outside the
    scope of its routine corporate duties. Thus, where the company is
    the offender, vicarious liability of the Directors cannot be imputed
    automatically, in the absence of any statutory provision to this effect.
    There has to be a specific act attributed to the director or any other
    person allegedly in control and management of the company, to the
    effect that such a person was responsible for the acts committed by
    or on behalf of the company.
[2025] 1 S.C.R.                                                         459

            Sanjay Dutt & Ors. v. The State of Haryana & Anr.


12. At the same time, wherever by a legal fiction the principle of vicarious
    liability is attracted and a person who is otherwise not personally
    involved in the commission of an offence is made liable for the same,
    it has to be specifically provided in the statute concerned. When it
    comes to penal provisions, vicarious liability of the managing director
    and director would arise provided any provision exists in that behalf
    in the statute. Even where such provision for fastening vicarious
    liability exists, it does not mean that any and all directors of the
    company would be automatically liable for any contravention of such
    statute. Vicarious Liability would arise only if there are specific and
    substantiated allegations attributing a particular role or conduct to
    such director, sufficient enough to attract the provisions constituting
    vicarious liability and by extension the offence itself.
13. It is the cardinal principle of criminal jurisprudence that there is no
    vicarious liability unless the statute specifically provides so. Thus,
    an individual who has perpetrated the commission of an offence on
    behalf of a company can be made an accused, if the statute provides
    for such liability and if there is sufficient evidence of his active role
    coupled with criminal intent. The primary responsibility is on the
    complainant to make specific averments as are required under the
    law in the complaint so as to make the accused vicariously liable.
    For fastening criminal liability on an officer of a company, there is
    no presumption that every officer of a company knows about the
    transaction in question.
14. The allegations which find place against the appellants herein
    in their personal capacity seem to be absolutely vague. When a
    complainant intends to rope in a Managing Director or any officer of
    a company, it is essential to make requisite allegations to constitute
    the vicarious liability.
15. When jurisdiction is exercised on a complaint petition filed in terms
    of Section 156(3) or Section 200 of the CrPC, the Court concerned
    should remain vigilant & apply its mind carefully before taking
    cognizance of a complaint of the present nature.
16. The High Court failed to pose unto itself the correct question i.e.,
    as to whether the complaint even if given face value and taken
    to be correct in its entirety would lead to the conclusion that the
    appellants herein were personally liable for the offence under
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       Section 4 of the Act, 1900 made punishable under Section 19 of
       the Act, 1900.
17. In Maharashtra State Electricity Distribution Company Limited and
    Anr., v. Datar Switchgear Limited and Ors., as reported in (2010) 10
    SCC 479, wherein, the Chairman of the Maharashtra State Electricity
    Board was made an accused for the offence under Sections 192
    and 199 respectively read with Section 34 of the IPC, this Court
    observed thus:
           “30. It is trite law that wherever by a legal fiction the
           principle of vicarious liability is attracted and a person who
           is otherwise not personally involved in the commission
           of an offence is made liable for the same, it has to be
           specifically provided in the statute concerned. In our
           opinion, neither Section 192 IPC nor Section 199 IPC
           incorporate the principle of vicarious liability, and therefore,
           it was incumbent on the complainant to specifically aver
           the role of each of the accused in the complaint. It would
           be profitable to extract the following observations made
           in S.K. Alagh: (SCC p.667, para 19)
                “19. As, admittedly, drafts were drawn in the name of
                the company, even if the appellant was its Managing
                Director, he cannot be said to have committed an
                offence under Section 406 of the Penal Code. If and
                when a statute contemplates creation of such a legal
                fiction, it provides specifically therefor. In absence of
                any provision laid down under the statute, a Director
                of a company or an employee cannot be held to be
                vicariously liable for any offence committed by the
                company itself.”
                                                   (Emphasis supplied)
18. In such circumstances, referred to above, no case could be said to
    have been made out for putting the three appellants to trial for the
    alleged offence. The Court concerned could not have issued process
    for the alleged offence.
19. In view of the aforesaid, this appeal succeeds and is hereby allowed.
    The impugned complaint and order taking cognizance of the said
    complaint is hereby quashed.
[2025] 1 S.C.R.                                                    461

              Sanjay Dutt & Ors. v. The State of Haryana & Anr.


20. We clarify that if it is the case of the department that the company
    has committed any breach or violation of any of the conditions
    imposed at the time of grant of license, then it is always open for
    authority concerned to proceed against the company for violation of
    such terms and conditions.
21. Pending application(s), if any, stand disposed of.

     Result of the case: Appeal allowed.



     †
         Headnotes prepared by: Ankit Gyan


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