IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
Umang Kejriwal and Ors. - Petitioners
Versus
The State of Jharkhand and Ors. - Opp. Parties
Cr.M.P. No. 3133 of 2013
Decided On : 19-04-2023
Legal Metrology Act - Quashing of criminal proceeding - Sections 31, 33, 38, 42 - Summary of the acts and sections referenced and discussed by the court: The court discussed the provisions of Section 49 of the Legal Metrology Act, 2009, which deals with offences by companies and the power of the court to publish the name, place of business, etc., for companies convicted. The court emphasized that only the person responsible for discharging the business of the company can be prosecuted and highlighted the requirement for a clear and categorical statement in the complaint petition to proceed against an officer of the company to determine vicarious liability for the offence committed by the company. The court also noted the lack of application of judicial mind in the sanction order, emphasizing the necessity of judicial scrutiny even if sanction is granted.
Fact of the Case:
The petition was filed for quashing the entire criminal proceeding, including the order dated 24.08.2013, under sections 31, 33, 38, and 42 of the Legal Metrology Act, 2009, alleging possession and use of uncertified and unstamped Weights and Measures equipment without import license.
Finding of the Court:
The court found that the company M/s Electrosteel Steel Limited was not made accused in the complaint, and there was no averment that the petitioners were responsible for the day-to-day affairs of the company. The court also noted the lack of application of judicial mind in the sanction order.
Issues: The issues revolved around the liability of the petitioners for the alleged offences under the Legal Metrology Act, 2009, and the validity of the criminal proceeding in the absence of specific averments in the complaint petition.
Ratio Decidendi: The court emphasized the requirement for a clear and categorical statement in the complaint petition to proceed against an officer of the company to determine vicarious liability for the offence committed by the company. Additionally, the court highlighted the necessity of judicial scrutiny even if sanction is granted.
Final Decision: The entire criminal proceeding, including the order dated 24.08.2013, was quashed and set aside for the petitioners. The petition was allowed and disposed of, and the interim order was vacated.
JUDGMENT :
1. Heard Mr. Indrajit Sinha assisted by Mr. Bibhash Sinha, learned counsel for the petitioner and Mr. Sunil Kumar Dubey, learned counsel for the State.
2. This petition has been filed for quashing of entire criminal proceeding including order dated 24.08.2013 passed in connection with W.M. Case No. 34 of 2013 whereby cognizance has been taken under sections 31, 33, 38 and 42 of the Legal Metrology Act, 2009, pending in the Court of learned Judicial Magistrate, Ist Class, Bokaro.
3. The complaint has been filed alleging therein that the accused persons were in possession and use of the seized Digital Rail In-motion Weigh Bridge (made in China) and Maximum capacity-Minimum capacity, e-value class (accuracy) etc, Model not mentioned, whose number is XK3105C, without certification and stamping, for failure to produce the documents on notice, for non availability of approval of model and for keeping Weights and Measures equipment without import licence.
4. Mr. Indrajit Sinha, learned counsel for the petitioners submits that in the enclosure to the said complaint a Memo dated 30.03.2013 has been filed wherein it has been reported that uncertified, unstamped and Metlertoledo China made in Motion Automatic Weigh Bridge was found installed and in this connection documents relating to approval of Model and Registration of importer of Weights and Measure was demanded but they were unable to produce, that is allegation. He further submits that Weights and Measure equipment was seized and seizure certificate was handed over vide certificate no. 0101 dated 14.02.2013. He submits that approval for filing the alleged complaint case was granted by the controller vide his communication no. 229 dated 18.06.2013. He further submits that the petitioners are innocent and have not committed any offence. He further submits that the petitioner no. 1 is former Managing Director of Electosteel Steel Limited, petitioner no. 2 is former director of Electrosteel Steel of the said company, petitioner no. 3 is the Chief Instrumentation and Automation and petitioner no. 4 is senior engineer of Instrumentation and Automation of the said company. He further submits that in view of section 49 of the Legal Metrology Act, 2009 only the person who is looking day to day affairs of the company can be charged. He submits that in the entire complaint there is no averment so far as these petitioners are concerned that they were responsible for the business of the company. He further submits that company has not been made accused in the present case and in absence of company the entire criminal proceeding is bad in law.
5. On the other hand, Mr. Sunil Kr. Dubey, learned counsel for the State submits that there is violation of the provision that is why the case has been lodged and the learned court has taken cognizance.
6. In view of above submissions of the learned counsel for the parties the court has gone through the contents of complaint, order taking cognizance and sanction order contained in Annexure-4 and finds that in the complaint petition the company M/s Electrosteel Steel Limited has not been made accused. For correct appreciation of the case Section 49 of the Legal Metrology Act, 2009 is quoted hereinbelow:-
(1) “Where an offence under this Act has been committed by the company,-
(a). (i) the person, if any, who has been nominated under subsection (2) to be in charge of, and responsible to, the company for the conduct of the business of the company and;
(ii) where no person has been nominated, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company
(b) the company shall be deemed to be guilty of the offence and shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly”
2. Any company m
The main legal point established in the judgment is the requirement for a clear and categorical statement in the complaint petition to proceed against an officer of the company to determine vicarious....
The liability of officers of a company for offences under the Legal Metrology Act is contingent on their direct involvement or responsibility as specified in section 49, and established legal precede....
The legal principle establishes that the question of manipulation of an electronic balance must be determined through trial, not through a pre-trial quashing.
The complaint was not maintainable without the company being made a party to the proceedings, and the direction to investigate the matter after receiving the complaint was in violation of Sec. 202 of....
The judgment established the principle that officers authorized by agreements and official directions have the right to inspect and investigate, and that allowing a proceeding to continue in such cas....
Directors' vicarious liability under Legal Metrology Act requires specific complaint averments of being in charge of business; mere directorship insufficient; company must be accused; magistrate must....
Vicarious liability under the Standards of Weights and Measures (Enforcement) Act requires specific averments linking the accused to the commission of the offence, not mere implication.
Point of law: Cognizance of offence – set aside - there is an embargo on prosecuting the Director of the company for the violation of any of the provisions resulting in commission of offences.
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