IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANIL KUMAR CHOUDHARY, J.
ATC Telecom Infrastructure Private Limited - Appellant
Versus
The State of Jharkhand - Appellant
W.P. (Cr.) No. 1110 of 2023
Decided on : 08-01-2025
(A) Constitution of India - Article 226 - Writ petition for quashing criminal proceedings - Allegations of misappropriation against company directors - Court reiterated that summons cannot be issued against positions as they are not juridical persons - The petitioner company terminated the lease agreement citing non-operational site - No overt act attributed to specific directors in complaint - Continuation of proceedings is an abuse of process of law. (Paras 2, 4, 10, 11, 12)
(B) Criminal Procedure - Summons issuance - It is a settled principle that summons in a criminal case cannot be issued against positions or posts without identifying the individual responsible for the alleged act. (Paras 4, 9)
Facts of the case:
The petitioner company entered into a lease agreement for tower installation but defaulted on payments. The complainant alleged misappropriation of funds, leading to a complaint filed after police inaction. The JMFC found sufficient grounds to proceed against the company's directors.
Findings of Court:
The court held that the continuation of proceedings against the directors was an abuse of process as no specific allegations were made against them.
Issues: The main issues were whether summons could be issued against company directors without naming individuals and whether the proceedings constituted an abuse of process.
Ratio Decidendi: The court ruled that summons cannot be issued against positions as they lack juridical personality, emphasizing the need for specific individuals to be named in criminal complaints.
Result: The entire criminal proceeding and the order taking cognizance were quashed and set aside.
JUDGMENT :
ANIL KUMAR CHOUDHARY, J.
Heard the parties.
2. This Writ Petition Criminal has been filed invoking the jurisdiction of this Court under Article 226 of the Constitution of India with the prayer for issuance of writ in the nature of certiorari for quashing the entire criminal proceeding including the order taking cognizance dated 16.09.2022 in connection with Complaint Case no. 1012 of 2022 whereby and where under, learned JMFC, Giridih found prima facie case for the offence punishable under Section 406 of IPC to proceed against the Director of the petitioner company and also the Director of the predecessor company of the petitioner in the name and style of M/s Wireless T.T. Info Services Limited.
3. The brief facts of the case is that M/s Wireless T.T. Info Services Limited entered into a lease agreement with the complainant to use the space of the complainant for the purpose of installing, maintaining and operating the tower and allied activities for a period of fifteen years for a fixed monthly fee. The company- M/s Wireless T.T. Info Services Limited paid license fee till the month of October, 2018 but thereafter, they defaulted in payment of the license fees, with the allegation that M/s Wireless T.T. Info Services Limited which was acquired by the petitioner, without any prior intimation to the complainant, has misappropriated and cheated a sum of Rs. 6,56,803/-. The complainant approached the police but as no action was taken, hence, the complainant filed the Complaint Case no. 1012 of 2022. Learned JMFC, Giridih, basing upon the complaint, statement on solemn affirmation of the complainant and the statement of the enquiry witnesses vide order dated 16.09.2022 found sufficient materials to proceed against the Director of the petitioner company and also the Director of the predecessor of the petitioner in the name and style of M/s Wireless T.T. Info Services Limited.
4. Learned counsel for the petitioner relying upon the judgment of this court in the case of M/s Steel Authority of India Limited vs. The State of Jharkhand & Anr. dated 22.04.2024 passed in CrMP No. 2956 of 2022 submits that therein, this Court relied upon the judgment of this Court in the case of Santosh Kumar vs. The State of Jharkhand & Anr. in Cr.M.P. No. 1211 of 2023 dated 28.08.2023, paragraph no. 7 of which reads as under :-
“Having heard the submissions made at the Bar and after going through the materials in the record, this Court has no hesitation in holding that by now it is a settled principle of law that summons in a criminal case to face trial cannot be issued against positions or post as a post is not juridical person. Hence, the learned Magistrate has committed illegality by issuing summons against the “Bank Manager of IDBI Bank, Sector 4, Bokaro” by not naming the person who was responsible for the said criminal act of being instrumental in opening a forged account of the son of the complainant.”
and has reiterated the settled principle of law that summons in a criminal case to face trial, cannot be issued against positions or post as a post is not juridical person.
5. It is next submitted by learned counsel for the petitioner that the petitioner in terms of the clause 9 of the Lease and License Agreement dated 28.03.2009 with the complainant, by adopting due procedure of law, has terminated the contract with the complainant vide termination notice dated 18.07.2019 as the site became non-operational and requested the complainant to remove the mobile tower and its equipment installed but the same was not permitted by the complainant, unless and until the payment of license fees for the entire contract period was made by the petitioner to the complainant.
6. It is next submitted that the petitioner company has six Directors but none of them stayed or ever posted at Patliputra colony, Patna, Bihar or Fateh Maidan Road, Hyderabad i.e. the address of the accused as mentioned in the complaint of the Complaint Case no. 1012 of 2022.
7. It is next s
Summons in criminal cases cannot be issued against positions without identifying responsible individuals, as positions are not juridical persons.
The court ruled that allegations against non-existent posts do not constitute a basis for criminal proceedings, emphasizing the necessity of specific accusations against individuals for liability.
The main legal point established in the judgment is that a criminal complaint lacking merit and based on a civil dispute, as well as a complaint rendered infructuous due to the liquidation of the com....
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....
Vicarious liability cannot be imposed on directors solely by virtue of their positions; specific allegations of wrongdoing must exist for criminal liability to be established.
Summoning of accused in a criminal case is a serious matter – Criminal Law cannot be set into motion as a matter of course – In order issuing summons, Magistrate has to record his satisfaction about ....
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
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