IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
S.N. Subrahmanyan S/o Late S.S. Narayanan – Petitioner
Versus
The State of Jharkhand – Respondent
Cr. M.P. No. 612 of 2020
Decided On : 21-12-2021
Criminal Procedure Code,1973 - Section 83 and 482 - Minimum Wages Act, 1948 - Section 2(e) and 19 - Employment and Service matter - Minimum rates of Wages - Above named accused person (petitioner) is employer as defined under Section 2(e) of Minimum Wages Act, 1948 and engaged for work Setting up 400 K.V. GIS Switch Yard from ‘A’ Plant DVC BTPS PO and PS Bokaro Thermal, District Bokaro which is a schedule employment under Minimum Wages Act, 1948 and Minimum rates of Wages fixed vide Notification No. 1285(E) dated of Govt. of India - Complainant is an Inspector - establishment of accused person(petitioner) and he inspected it and detected above offences and served inspection report cum show-cause Notice No. dated through Regd. A.D. post wherein accused person (petitioner) was asked to comply with provisions of Act and Rules thereunder and report compliance with stipulated period direct to Dy. Chief Labour Commissioner (Central), endorsing a copy of same to complainant - But accused person (petitioner) failed to comply directive and hence this complaint is filed – Held, In absence of company being arraigned as an accused, a complaint against appellant was therefore not maintainable - Appellant had signed cheque as a Director of company and for and on its behalf - Moreover, in absence of a notice of demand being served on company and without compliance with the proviso to Section 138, High Court was in error in holding that company could now be arraigned as an accused - . In terms of ratio above, a company being a juristic person cannot be imprisoned, but it can be subjected to a fine, which in itself is a punishment - Every punishment has adverse consequences and therefore, prosecution of the company is mandatory - Exception would possibly be when company itself has ceased to exist or cannot be prosecuted due to a statutory bar - However, such exceptions are of no relevance in present case - Present prosecution must fail for this reason as well - Cr. M.P. No. 612 of 2020 stands allowed and disposed of.
JUDGMENT :
SANJAY KUMAR DWIVEDI, J.
1. Heard Mr. Ajit Kumar, the learned Senior counsel assisted by Mr. Nitin Kumar Pasari, the learned vice counsel appearing on behalf of the petitioner and Ms. Shresha Sinha, the learned counsel appearing on behalf of the respondent-Union of India.
2. This petition has been filed for quashing the order dated 20.12.2013 by which cognizance of offence under the Minimum Wages Act has been taken against the petitioner. Further prayer is made for quashing the orders dated 20.09.2016, 24.01.2017, 26.07.2018, 27.03.2019 and 27.06.2019 whereby bailable warrant, non-bailable warrant, processes under section 82 and under section 83 Cr.P.C. and permanent warrant, respectively, have been issued against the petitioner.
3. The complaint was filed stating therein that:
(B) Having jurisdiction over the establishment of accused person(petitioner) and he inspected it on 20.05.2013 and detected the above offences and served the inspection report cum show-cause Notice No. 26/46/2013-B dated 24.05.2013 through Regd. A.D. post wherein the accused person (petitioner) was asked to comply with the provisions of the Act and Rules thereunder and report compliance with the stipulated period direct to the Dy. Chief Labour Commissioner (Central), Dhanbad endorsing a copy of the same to the complainant. But the accused person (petitioner) failed to comply the directive and hence this complaint is filed.
(C) That the accused person (petitioner) contravened the provisions of the Act and Rules rendered himself liable for prosecution. Therefore, it is prayed that the cognizance be taken and the accused person be summoned to stand trial and punished according to Law.
4. Mr. Ajit Kumar, the learned Senior counsel appearing for the petitioner by way of referring the several orders of the learned trial court submits that the petitioner has not received the summon order and only after knowing that order/process under section 82 Cr.P.C. has been issued, they came to know about the pendency of this case and thereafter this petition has been filed before this Court under section 482 Cr.P.C. He further submits that the petitioner was Director at the time of occurrence and he further submits that the company is not made accused and only the petitioner has been made accused and in that view of the matter, the prosecution is bad in law. To buttress his this argument, he relied in the case of Aneeta Hada vs. Godfather Travels and Tours (P) Ltd. 2012 (5) SCC 661. Paragraph nos. 51 and 59 of the said judgment are quoted herein-below:
59. In view of our aforesaid analysis, we arrive at the irresistible conclusion that for maintaining the prosecution under Section 141 of the Act, arraigning of a company as an accused is imperative. The other categories of offenders can only be brought in the drag-net on the touchstone of vicarious liability as the same
Aneeta Hada vs. Godfather Travels and Tours (P) Ltd. 2012 (5) SCC 661
Anil Gupta vs. Star India Private Limited and Another
Birla Corporation Limited vs. Adventz Investments and Holdings Limited and Others
GHCL Employees Stock Option Trust vs. India Infoline Limited
Himanshu vs. B. Shivamurthy and Another
Krishna Lal Chawla and Others vs. State of Uttar Pradesh and Another
Maksud Saiyed vs. State of Gujarat
National Small Industries Corporation Limited vs. Harmeet Singh Paintal and Another
National Small Industries Corporation Limited vs. State (NCT of Delhi) and Others
Pepsi Foods Ltd. and Another vs. Special Judicial Magistrate
Sharad Kumar Sanghi vs. Sangita Rane
State of Madras vs. C.V. Parekh and Another
The liability of officers of a company under the Contract Labour (Regulation and Abolition) Act, 1970 is contingent upon their involvement in the day-to-day affairs of the company, and the prosecutio....
The main legal point established is that under the Contract Labour (Regulation and Abolition) Act, 1970, officers of a company can only be prosecuted if the company is made accused, and specific alle....
Specific allegations linking individuals to the company's conduct are crucial for establishing vicarious liability under the Minimum Wages Act.
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.