A company can be held criminally liable for offences committed in relation to its business, and the court can impose a sentence of fine on the company even if the prescribed punishment includes imprisonment.

JUDGMENT

A S Gadkari, J. - The aforementioned Petitions are filed under Article 227 of the Constitution of India and under Section 482 of the Code of Criminal Procedure, 1973 (for short, 'Cr.P.C.').

The Petitioner Ganesh Benzoplast Limited is Complainant in CC No.56/SW/2011 pending on the file of learned Metropolitan Magistrate, Railway Mobile Court, Andheri, Mumbai. The Respondent No.1 in WP No. 127 of 2020 i.e. Morgan Securities Credits Pvt. Ltd. is accused No.1 and Petitioners in WP No.348 of 2020, 349 of 2020 and 357 of 2020 are original accused Nos.3, 4 and 2 respectively in the said complaint.

For the sake of brevity, the parties herein will be hereinafter referred to as per their nomenclature in the said complaint i.e. 'complainant' and 'accused'.

2. All the Petitioners impugn Judgments and Orders dated 2nd December, 2019 passed in Criminal Revision Application Nos.128 of 2017, 167 of 2017, 168 of 2017 and 166 of 2017, by the learned Additional Sessions Judge, Borivali Division, Dindoshi, Mumbai. The said Revisions were filed by Accused against the Order of issuance of process under Sections 406, 420 r/w Section 34 of the Indian Penal Code r/w Section 15- HA of the SEBI Act, 1992, by the learned Metropolitan Magistrate, Railway Mobile Court, Andheri, Mumbai, below Exh-1, in CC No.56/SW/2011, by its Order dated 22nd March, 2017.

2.1) Writ Petition No.127 of 2020 filed by the complainant impugns Judgment and Order passed in Criminal Revision Application No.128 of 2017 by the Revisional Court, thereby completely exonerating accused No.1, Morgan Securities Pvt. Ltd.. The Criminal Writ Petition Nos.128 of 2020, 129 of 2020 and 130 of 2020 impugn Orders of the Revisional Court to the extent, it exonerated accused Nos.2 to 4 from the offences under Sec. 420 of IPC and under Sec. 15-HA of the SEBI Act.

2.2) Writ Petition Nos.348 of 2020 and 349 of 2020 and 357 of 2020 are filed by accused Nos.3,4 and 2 respectively challenging the impugned Orders to the extent, it upheld issuance of process Order under Section 406 r/w Section 34 of the IPC against them, being Directors of accused No.1-company.

2.3) As common questions of facts and law are involved in all the aforestated Petitions, the same are decided and disposed off by this common Judgment.

3. Heard Mr. Aabad Ponda, learned Senior Advocate for the Petitioners in WP Nos.348 of 2020, 349 of 2020 and 357 of 2020 and for the Respondent-accused in WP Nos.127 of 2020, 128 of 2020, 129 of 2020 and 130 of 2020, Mr. M.G. Shukla, learned counsel for the Petitioners in WP Nos.127 of 2020, 128 of 2020, 129 of 2020 and 130 of 2020 and for the Respondent No.2 in WP Nos.348 of 2020, 349 of 2020 and 357 of 2020 and Mr. A.R. Patil, learned APP for the State in all the Petitions.

4. Complainant has filed the aforestated complaint bearing CC No.56/SW/2011 before the learned Magistrate on 11th February, 2011.

It is the case of the complainant that, the complainant is a company incorporated under the provisions of Companies Act, 1956. That, Ganesh Benzoates Pvt. Ltd. is the sister concern company of the complainant and as a Guarantor provided the security to the accused on behalf of complainant against the Inter Corporate Deposit (ICD) facility provided by the accused No.1, to the complainant to the extent of Rs.50 lacs. The accused Nos.2 to 4 are the Directors of accused No.1-company and are responsible for day to day affairs and acts of accused No.1.

4.1) In the month of March, 2000 accused No.1 Morgan Securities Credits Pvt. Ltd. (for short, 'Morgan') agreed to provide an ICD facility to the complainant, Ganesh Benzoplast Limited (for short, 'Ganesh') to the tune of Rs.50 lacs. Accordingly, on 7th March, 2000, ICD Agreement, D.P. Note, Letter of Continuity, ICD Receipt, Personal Guarantee Deed and Corporate Guarantee Deed were executed between the parties. Morgan (A-No.1) paid Rs.50 lacs to Ganesh vide cheque No.048526 dated 7th March, 2000.

4.2) A Letter of Pledge dated 7th March, 2000 was executed by