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2020 Supreme(SC) 652

SUPREME COURT OF INDIA
L. NAGESWARA RAO, HEMANT GUPTA, AJAY RASTOGI, JJ.
Hindustan Unilever Limited – Appellant
Versus
The State of Madhya Pradesh – Respondent
Criminal Appeal No. 715, 716 of 2020 (Arising out of SLP (Criminal) No. 578, 806 of 2020)
Decided On : 05-11-2020

Advocates:
Advocate Appeared:
For the Appellant :Mr. Sidharth Luthra, Sr. Advocate, Ms. Supriya Juneja, Advocate, Mr. Aditya Singla, Advocate, Ms. Ankita Tiwari, Advocate, Mr. Harsh Yadav, Advocate, Mr. Ayush Kaushik, Advocate, Mr. Lakshay Mehta, Advocate
For the Respondent:Mr. Arjun Garg Advocate

IMPORTANT POINTS
(1) In absence of Company, Nominated Person cannot be convicted or vice versa. Finding of High Court to revisit judgment will be unfair to appellant/Nominated Person who has been facing trial for more than last 30 years.
(2) In terms of Section 6 of General Clauses Act, 1897, unless different intention appears, repeal of a statute does not affect any investigation, legal proceeding or remedy.

Headnote:

Food Safety and Standards Act, 2006 – Section 97General Clauses Act, 1897 – Section 6Criminal Procedure Code, 1973 – Section 401(1) – Sale of adulterated Vanaspati Ghee – Re-trial – Criminal Prosecution was initiated under repealed Prevention of Food Adulteration Act, 1954 – Conviction and sentence passed against appellant, being a nominated person of Company, was set aside by High Court and matter was remitted back to trial Court for passing fresh judgment – In terms of Section 6 of General Clauses Act, 1897, unless different intention appears, repeal of a statute does not affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if the Repealing Act or Regulation had not been passed – In view of Section 97 of 2006 Act, as also under Section 6 of General Clauses Act, 1897, proceedings would continue under the Act – No benefit can be taken under 2006 Act as prosecution and punishment under the Act is protected – However, order of remand by High Court to trial court against Company cannot be sustained for reason that such an order was passed without giving opportunity of hearing, as contemplated under Section 401(2) of Code – In absence of Company, Nominated Person cannot be convicted or vice versa – Finding of High Court to revisit judgment will be unfair to appellant/Nominated Person who has been facing trial for more than last 30 years – Order of remand to trial court to fill-up lacuna is not a fair option exercised by High Court as failure of trial court to convict Company renders entire conviction of Nominated Person as unsustainable – Order passed by High Court set aside and complaint dismissed. (Paras 10, 15, 17, 19, 22 and 23)

Facts of the Case:

Challenge in the present appeals is to an order passed by High Court of Madhya Pradesh, Jabalpur on 9.1.2020 whereby revision filed by Shri Nirmal Sen, appellant/Nominated Officer (Incharge) of the Hindustan Unilever Limited1, was allowed, however the matter was remitted back to the trial court to revisit evidence adduced by both the parties, so far it relates to the appellants, Nirmal Sen and the Company.

Findings of Court:

Clause (a) of Sub-Section (1) of Section 17 of the Act makes the person nominated to be in charge of and responsible to company for the conduct of business and the company shall be guilty of the offences under clause (b) of Sub-Section (1) of Section 17 of the Act. Therefore, there is no material distinction between Section 141 of the NI Act and Section 17 of the Act which makes the Company as well as the Nominated Person to be held guilty of the offences and/or liable to be proceeded and punished accordingly. Clauses (a) and (b) are not in the alternative but conjoint.

Result : Appeals allowed.

JUDGMENT :

HEMANT GUPTA, J.

1. The challenge in the present appeals is to an order passed by the High Court of Madhya Pradesh, Jabalpur on 9.1.2020 whereby the revision filed by Shri Nirmal Sen, appellant/Nominated Officer(Incharge) of the Hindustan Unilever Limited 1 [Hereinafter referred to as "Company".], was allowed, however the matter was remitted back to the trial court to revisit the evidence adduced by both the parties, so far it relates to the appellants, Nirmal Sen and the Company. The operative part of the order reads thus:

    "8. If the company-Hindustan Lever Limited is acquitted of the charges, the said benefit will also directly go to the applicant. In view whereof, this Court finds a glaring and patent defect in the judgment of the trial Court as well as in the judgment of the appellate Court, thus, this Court, in these premises, finds it fit to interfere in the judgment of the trial Court in exercise of the revisional jurisdiction under Section 401(1) of Cr.P.C, hence, this Court is inclined to set aside the conviction and sentence passed against the applicant being a nominated person of the company and remitted back the matter to the trial Court for passing fresh judgment considering the company-Hindustan Lever Limited that had already been arrayed as an accused along with the applicant.

    9. In view of aforesaid discussions, this revision is allowed. The impugned conviction and sentence passed against the applicant is hereby set aside and the matter is remitted back to the trial Court to revisit the evidence adduced by both the parties and also revisit its judgment dated 16/06/2015, so far as it relates with the applicant and company-Hindustan Lever Limited thereafter again pass a separate judgment after providing opportunity of hearing to the applicant as well as the company-Hindustan Lever Limited without getting prejudice with the discussions made by the appellate Court and this Court."

2. Brief facts leading to the present appeals are that a complaint was filed by Shri H.D. Dubey, Inspector, Food and Health, on the basis of a sample taken on 7.2.1989 in respect of Dalda Vanaspati Khajoor Brand Ghee manufactured by the Company, in terms of the provisions of The Prevention of Food Adulteration Act, 1954 2 [For short, the 1954 Act']. The sample of Vanaspati Ghee was taken from the godown of Lipton India Limited which was found to be adulterated as the melting point was found to be 41.8 degree centigrade which is higher than the normal range i.e. as against 31-41 degree centigrade. Initially, the complaint was filed against the Directors of the Company as well as that of Lipton India Limited. However, the said proceedings came to be decided by this Court in a judgment reported as R. Banerjee & Ors. vs. H.D. Dubey & Ors., (1992) 2 SCC 552 wherein it was held as under:

    "12. In the result, the appeals are allowed. The order of the learned Magistrate as well as the impugned order of the High Court are set aside. The matters are remanded to the learned trial Magistrate with a direction to inquire into the question whether the nomination forms nominating H. Dayani and Dr Nirmal Sen were received and acknowledged by the Local (Health) Authority competent to receive and acknowledge the same. This question will be considered as a preliminary question and the learned magistrate will record a finding thereon. If he comes to the conclusion that the nomination forms had been acknowledged by the competent Local (Health) Authority he shall drop the proceedings against the Directors of the company, other than the company and the nominated persons. If on the other hand he comes to the conclusion that the prescribed forms had been acknowledged by a person other than the competent Local (Health) Authority he will proceed against all the persons who are shown as the accused in the complaint i.e. all the Directors including the nominated person and the company. The appeals are allowed accordingly."

3. In terms of the directions of this C


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