ANDHRA PRADESH HIGH COURT AT AMARAVATI
R.Raghunandan Rao , J.
Mannam Venkata Krishna Rao – Appellant
Versus
State of Andhra Pradesh – Respondent
Crl.P. Nos. 1596 & 1597 of 2022
Decided On : 14-12-2022
CRIMINAL PROCEDURE CODE - SECTION 305 - SERVICE OF SUMMONS ON CORPORATE BODIES AND SOCIETIES - PROCEDURE WHEN CORPORATION OR REGISTERED SOCIETY IS AN ACCUSED - INTERPRETATION AND APPLICATION - COMPANY'S RIGHT TO APPOINT REPRESENTATIVE - COURT'S DISCRETION TO DETERMINE REPRESENTATIVE'S STATUS - WAIVER OF REQUIREMENTS IN ABSENCE OF REPRESENTATIVE.
Fact of the Case:
The petitioner, the former Managing Director of a company facing criminal charges, challenged the complainant's insistence on his appearance as the company's representative, arguing that he had resigned before the complaint was filed and could not be compelled to represent the company.
Finding of the Court:
The court held that Section 305 of the Criminal Procedure Code (Cr.P.C.) governs the representation of companies in criminal cases and provides discretion to the company to appoint a representative or decline to do so. The court also clarified that the company's representative can be removed upon application to the trial court.
Issues: 1. Whether the complainant can insist on the petitioner's appearance as the company's representative despite his resignation as Managing Director. 2. Interpretation and application of Section 305 of the Cr.P.C. in the context of a company's right to appoint a representative and the court's discretion to determine the representative's status.
Ratio Decidendi: 1. Section 305 of the Cr.P.C. empowers companies to appoint representatives for criminal proceedings, and the complainant cannot dictate who should represent the company. 2. The court has the discretion to determine whether a person claiming to be the company's representative is indeed authorized to act in that capacity. 3. If the company declines to appoint a representative, the trial court can proceed without one, and the requirements for the accused's presence and participation may be waived.
Final Decision: The court allowed the petitioner's criminal petitions and directed the trial court to remove his name as the company's representative in the criminal cases.
JUDGMENT
1. The petitioner herein is said to have been the Managing Director of a company, which is sole accused in C.C.Nos.679 and 759 of 2016 on the file of the Judicial Magistrate of I Class, Special Mobile Court, Eluru, West Godavari District, for the offences punishable under Sec. 138 of the Negotiable Instruments Act.
2. The complaint of the petitioner is that the complainant in the said cases had named him as the representative of the accused-company and is insisting on his appearance on behalf of the accused-company.
3. It is the case of the petitioner that he had resigned as the Managing Director of the company even prior to filing of the complaint and cannot be forced to appear on behalf of the company on that count also.
4. Sri B. Nalin Kumar, learned counsel appearing for the petitioner submits that Sec. 305 Cr.P.C., sets out the manner in which the company, which is arrayed as an accused in a criminal case is to be represented. He submits that the provisions of Sec. 305 Cr.P.C., would not give discretion to the complainant to name the person who should represent the company. He further submits that Sec. 305 Cr.P.C., in fact provides discretion to the company to decide whether any person should represent it or whether a particular person should represent it before the Court. In the circumstances, the insistence that the petitioner should represent the accused company before the trial Court is not in accordance with Sec. 305 Cr.P.C.
5. Sri Madhava Rao Nalluri, learned counsel appearing for the respondent/complainant, contends that the petitioner is very much the Managing Director of the company and had only set up documentation to claim that he had ceased to be the Managing Director of the company even before the filing of the criminal complaint. This issue is a question of fact, which is not being considered by this court and this judgment is proceeding on the basis of the petitioner continuing to be the managing director of the company.
Consideration of the Court:
6. The method and procedure of service of summons on a company is contained in sec. 63 of Criminal Procedure Code, which reads as follows: Sec. 63: Service of summons on corporate bodies and societies: Service of a summons on a corporation may be effected by serving it on the secretary, local manager or other principal officer of the corporation, or by letter sent by registered post, addressed to the chief officer of the corporation in India, in which case the service shall be deemed, to have been effected when the letter would arrive in ordinary course of post.
7. The above provision permits service of summons on a company by serving the said summons on any of the principal officers of the company mentioned in the Sec. 63. However, the manner in which the company is to be represented before a court, after service of summons, is contained in sec. 305 of the criminal procedure code which reads as follows:
305. Procedure when corporation or registered society is an accused.
(1) In this sec., " corporation" means an incorporated company or other body corporate, and includes a society registered under the Societies Registration Act, 1860 (21 of 1860 ).
(2) Where a corporation is the accused person or one of the accused persons in an inquiry or trial, it may appoint a representative for the purpose of the inquiry or trial and such appointment need not be under the seal of the corporation.
(3) Where a representative of a corporation appears, any requirement of this Code that anything shall be done in the presence of the accused or shall be read or stated or explained to the accused, shall be construed as a requirement that that thing shall be done in the presence of the representative or read or stated or explained to the representative, and any requirement that the accused shall be examined shall be construed as a requirement that the representative shall be examined.
(4) Where a representative of a corporation does not appear, any such requirement as is referred t
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