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2023 Supreme(All) 2673

IN THE HIGH COURT OF ALLAHABAD
SURESH KUMAR GUPTA, J.
Nagarajan Krishna Murthy Dire. Geo. Pvt. Ltd. - Applicant
Versus
State of U.P. And Another - Opposite Parties
APPLICATION UNDER SECTION 482 NO. 67 OF 2023.
Decided On : 27-01-2023

Advocates appeared:
For the Applicant : Rajendra Kumar Dwivedi.
For the Opposite Party : G.A., Ashok Kumar Verma.

Headnote:(A) Air (Prevention and Control of Pollution) Act, 1981 - Section 37, 31-A, and 40 - Complaint against directors of a company for environmental offences - Summoning order challenged on grounds of absence of specific allegations against directors, delegation of powers, and failure to conduct a preliminary inquiry - Court highlights the necessity of attributing specific roles to directors for vicarious liability. (Paras 2, 4, 12, 16, and 20)

(B) Criminal Procedure Code, 1973 - Section 482 and Section 202 - Court's inherent powers in quashing proceedings and need for prior inquiry before issuing summons - Emphasized that courts must not stifle legitimate prosecutions simply based on technical objections. (Paras 8, 11, and 19)

Facts of the case:
The applicant, a director of a company, challenged a summoning order in a pollution complaint, claiming lack of specific allegations against him and contending that responsibilities lay with other officials.

Findings of Court:
The court maintained the validity of the previous summoning order, concluding there was sufficient basis for proceeding with the case.

Issues: Whether the applicant's role as a director involved direct responsibility for the company's actions and the validity of the summoning order without a prior inquiry?

Ratio Decidendi: The court ruled that directors of a company could be held accountable under pollution laws and asserted that a broader interpretation of responsibility applies in cases of environmental offences.

Result: Application under Section 482 CrPC rejected.

Table of Content
1. challenging summoning order in pollution case. (Para 2)
2. director's vicarious liability for company actions. (Para 3 , 4 , 5)
3. legitimacy of directions issued by the board. (Para 6 , 7)
4. compliance with procedure in issuing summons. (Para 8 , 9 , 10)
5. legal responsibility of directors for environmental offences. (Para 11 , 12 , 13 , 14 , 15 , 16)
6. trial court's authority in cognizance. (Para 17 , 18)
7. rejection of quashing application. (Para 19 , 20)

JUDGMENT

Suresh Kumar Gupta, J.

Heard Mr. Vivek Raj Singh, learned Senior Advocate assisted by Mr. Rajendra Kumar Dwivedi and Mr. Subhash Gulati, learned counsels for the applicant, learned AGA and Mr. Ashok Kumar Verma, learned counsel appearing for U.P. Pollution Control Board and perused the material available on record.

2. By means of the instant application under Section 482 Cr.P.C., the applicant has challenged the proceedings of Complaint Case No. 102 of 2021 "U.P. Pollution Control Board v. M/s L&T Geo Structure through its Directors" pending in the Court of Learned Special Judicial Magistrate Pollution/CBI (Water Air Pollution Control Lucknow) Lucknow, as well as the impugned summoning order dated 29.03.2022 passed by the Court of learned Special Judicial Magistrate, Lucknow in the above-mentioned Complaint Case No. 102 of 2021, whereby the Petitioner has been summoned as an accused for commission of offence under sections 37 of Air (Prevention and Control of Pollution) Act, 1981 (herein referred to as "the Act, 1981").

3. Learned counsel for the applicant submits that during pendency of the present proceedings, Subbaiya Kanappan, Director of L&T Geo Structure Pvt. Ltd. (in short 'Company') was arraigned as a co-accused in the matter, passed away on 25.4.2020. So the complaint case against him stands abated.

4. Learned counsel for the applicant further submits that the complaint which has been filed by the respondents, does not attribute any specific role. The applicant has been arraigned as an accused merely because he is one of the Directors of the Company. It is an admitted fact that at the time of inspection at the site of the project, only Mr. Ankur was present. It is further submitted that a Project Manager for M/s Panki Thermal Power Plant was appointed by the Company and power of attorney was executed in favour of Praveen Pratap Singh. In fact, the Bharat Heavy Electricals Limited (BHEL) was the main contractor which had been awarded the contract by UPRVUNL for the entire project of establishing the 1x660 MW Units at Panki on EPC (Engineering, Procurement, and Construction) basis. Thereafter, the BHEL had engaged the services of applicant's Company for carrying out the specialized activity of Pot Pilling and Pedestal work for their Project. It is further submitted that the responsibility of seeking requisite permission from the concerned Board i.e. UPPCB under section 21 of the Air (Prevention and Control of Pollution) Act, 1981 and other statutory compliances like installment of PTZ (Pan Tilt Zoom Camera) and providing Dust Control Audit on the portal of Respondent/Complainant's Board was primarily vested with UPRVUNL being the Project proponent or BHEL being the Main Contractor.

5. It is further submitted that no communication/letter was ever sent to the Company or to its Directors/officials including the Project Manager posted at the Panki Plant for ensuring any statutory compliances in relation to the said specialized works. It is also submitted that being the Director of the Company, the applicant was neither posted at the Project site nor has participated in the day-to-day activities carried out by the Company at the Project site and, therefore, he cannot be held vicariously liable for the offence allegedly committed by the Company. The role of the applicant in the capacity of a Director has always been at a policy-making level and governance only. Most of the executive powers to run the company's business and visit performance of diffe

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