IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
Raj Kumar Todi & Ors. - Petitioners
Versus
The State of West Bengal & Anr. - Opposite Parties
CRR No. 410 of 2019 With CRAN 4 of 2023
Decided On : 20-04-2023
Code of Criminal Procedure, 1973 - Section 239, 207, 319 - Indian Penal Code, 1860 - Sections 420, 406, 405, (1), 34 - Employees’ Provident Funds & Misc. Provisions Act, 1952 - Section 14-A - Provident Fund - Interests for late payments - Non-payment of Employees contribution - Revision preferred against an order passed by Learned 2nd Additional Chief Judicial Magistrate rejecting application of petitioners for discharge made under Section 239 of Code of Criminal Procedure, 1973, in G.R. Case arising out of Police Station – Held, Accordingly under Section 14A of Employees’ Provident Funds & Misc. Provisions Act, every person, who at time offence was committed, was in charge of, and was responsible to company for conduct of business of company, as well as company, shall be deemed to be guilty of offence and shall be liable to be proceeded against and punished accordingly - Thus it is company ‘Supreme Paper Mills Ltd.’ herein who is ‘employer’ in respect of its employees and not petitioners who as directors are not liable under Section 405(1) of Indian Penal Code - Order passed by Learned 2nd Additional Chief Judicial Magistrate thereby rejecting application of petitioners for discharge made under Section 239 of Code of Criminal Procedure, 1973, in G.R. Case arising out of Police Station under Sections 420/406 of Indian Penal Code, is hereby set aside and quashed – CRR allowed.
JUDGMENT :
Shampa Dutt (Paul), J.
1. The present revision has been preferred against an order dated 15.12.2018 passed by the Learned 2nd Additional Chief Judicial Magistrate, Kalyani, District Nadia, rejecting the application of the petitioners for discharge made under Section 239 of the Code of Criminal Procedure, 1973, in G.R. Case No. 1819 of 2014, arising out of Chakdah Police Station Case No. 782 dated 26.11.2014 under Sections 420/406 of the Indian Penal Code.
2. The petitioners case is that the petitioner no. 1 Raj Kumar Todi is the Chairman cum Managing Director of M/s Supreme Paper Mills Limited. The petitioner no. 2 Dhrub Todi @ Drub is a Director of the said company and the petitioner no. 3 Rajiv Patel was the General Manager (Works) of the said company at the relevant time.
3. On the basis of a written complaint, dated 25th November 2014, lodged by one Sajal Bramha, Enforcement Officer, Employees Provident Fund, EPFO, SRO, Barrackpore, for non-payment of the Employees contribution to the Employees Provident Fund Scheme to the tune of Rs.9,28,193/-(Rupees Nine Lakh Twenty Eight Thousand One Hundred Ninety Three) for the period of July’ 2014 to October’ 2014, a case was initiated under Sections 420/406 of Indian Penal Code, being Chakdah Police Station Case No. 782 of 2014, dated 26.11.2014 (G.R. Case No. 1819 of 2014).
4. It is submitted that subsequently the entire alleged dues had been deposited with the Provident Fund Authorities with interests for late payments.
5. After completion of investigation in Chakdah Police Station Case No. 782 dated 26.11.2014, the Investigating Officer submitted Charge Sheet bearing no. 321 dated 23.06.2015 under Sections 420/406/34 of the Indian Penal Code against all the petitioners but not against Supreme Paper Mills Limited.
6. The Learned Additional Chief Judicial Magistrate, Kalyani, District - Nadia, upon receipt of such Charge Sheet, in connection with Chakdah Police Station Case No. 782 dated 26.11.2014 was pleased to take cognizance of the offences disclosed therein and after supplying copies of documents intended to be relied upon by the prosecution, to the petitioners in terms of Section 207 of the Code of Criminal Procedure, 1973, transferred the case to the Learned 2nd Additional Chief Judicial Magistrate, Kalyani, District - Nadia, for disposal.
7. The Petitioners filed an application, dated 10.09.2018 for discharge under Section 239 of the Code of Criminal Procedure, 1973, before the Learned 2nd Additional Chief Judicial Magistrate, Kalyani District-Nadia, inter alia on the ground that the concept of vicarious liability was alien to the Indian Penal Code and where the offences under Sections 420/406/34 were alleged to have been committed by a company, its Managing Director, Directors and other officers could not be prosecuted.
8. The Learned 2nd Additional Chief Judicial Magistrate, Kalyani, District – Nadia, by an order dated 15.12.2018, was pleased to reject the application, dated 10.09.2018 under Section 239 of the Code of Criminal Procedure, 1973, for the discharge of the petitioners, inter alia on the ground that there is a prima-facie case of offence against the accused persons under Section 406 of the Indian Penal Code and was pleased to fix 27.03.2019 for consideration of charge.
9. Mr. Y.J. Dastoor, learned counsel for the petitioners has submitted that the impugned order is an abuse of the process of court and as such the same is liable to be quashed against all the petitioners for the ends of justice.
10. It is further submitted that the impugned proceeding does not disclose the essential ingredients required to constitute offences under Sections 420/406/34 of the Indian Penal Code as against the petitioners.
11. It is the case of the petitioners that they do not come within the ambit of “Employer” under the Indian Penal Code and as such they are liable to be discharged.
12. That the Learned 2nd Additional Chief Judicial Magistrate, Kalyani, District – Nadia failed to ap
S.K. Alagh Versus State of Uttar Pradesh
Maksud Saiyed Versus State of Gujarat
A director of a company cannot be held responsible for any act of the company who is the employer and is liable for depositing the employees' share of provident fund before the provident fund authori....
Directors of a company cannot be prosecuted for non-payment of employees' contributions under the EPF Act and are not liable to be charged under Sections 406 and 409 of the IPC for such non-payment.
Directors can be held liable for non-remittance of provident fund contributions, and late payments do not absolve prior violations.
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