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2024 Supreme(Online)(KER) 39656
HIGH COURT OF KERALA
P.V.KUNHIKRISHNAN, J
DR.K.J. ABRAHAM – Appellant
Versus
STATE OF KERALA – Respondent
Crl.MC 7521/2018
S.RAJEEV SRI.K.K.DHEERENDRAKRISHNAN SRI.V.VINAY SRI.D.FEROZE SRI.K.ANAND (A-1921)
Complaints against a trust's Chairman quashed due to lack of specific allegations of responsibility for the trust's affairs, establishing the principle that vicarious liability requires clear statutory provisions.
Headnote:(A) Minimum Wages Act, 1948 - Section 22(A); Maternity Benefit Act, 1961 - Section 23; Kerala Shops and Commercial Establishments Act, 1960 - Section 29 - Complaints filed against the Chairman of a trust for violations of various labor laws during inspections - Complaints quashed due to lack of specific allegations against the petitioner regarding responsibility for the trust's affairs. (Paras 10, 12, 17)
(B) Vicarious Liability - The court established that there can be no vicarious liability unless the statute explicitly provides for it, and the prosecution must demonstrate the accused's involvement in the company's affairs. (Paras 16)
Facts of the case:
The petitioner, Chairman of Mount Zion Medical College Hospital, faced multiple complaints for alleged violations of labor laws based on inspections conducted on 22.09.2017.
Findings of Court:
The court found insufficient evidence in the complaints to hold the petitioner liable as there were no specific allegations of responsibility.
Issues: The main issue was whether the complaints sufficiently implicated the petitioner for the alleged violations.
Ratio Decidendi: The court ruled that without specific allegations of responsibility in the complaints, the complaints could not stand, aligning with established legal principles regarding vicarious liability.
Result: All Criminal Miscellaneous Cases allowed, quashing proceedings against the petitioner.
ORDER
These five Criminal Miscellaneous Cases are filed against the same person alleging same set of facts and therefore, I am disposing of these cases by a common order.
2. Petitioner is arrayed as accused in S.T. Nos.1023/2018, 1024/2018, 1025/2018, 1028/2018 and 1029/2018 on the file of the Judicial First Class Magistrate Court, Adoor. Petitioner is arrayed as an accused in the status of Chairman, Mount Zion Medical College Hospital, Chayalode, Adoor.
3. Crl.M.C. No.7521/2018 is filed to quash Annexure-I complaint. Annexure-I complaint is filed under Section 22 (A) of the Minimum Wages Act , 1948 (for short 'Act 1948') alleging violation of Rules 29(1) & 29(5) of the Minimum Wages (Central) Rules and Section 12 of Act 1948. It is alleged that, when the complainant, Assistant Labour OfÏcer inspected Mount Zion Medical College Hospital, Chayalode, Adoor on 22.09.2017 at 10.30 a.m., the above violations were found.
4. Crl.M.C. No. 7524/2018 is also filed under Section 22 (A) of Act 1948 alleging violation of Rules 29(8), 21A(1), 21A(2) and 29(2) of the Minimum Wages (Central) Rules. It is alleged that, when the Assistant Labour OfÏcer inspected the Mount Zion Medical College Hospital, Chayalode, Adoor on 22.09.2017 at 10.30 a.m., the above violations were found.
5. Crl.M.C. No. 7538/2018 is filed to quash Annexure-I complaint. Annexure-I is a complaint filed under Section 23 of the Maternity Benefit Act , 1961. It is alleged that, when the Assistant Labour OfÏcer inspected the Mount Zion Medical College Hospital, Chayalode, Adoor, which is a commercial establishment as defined in the 1961, it was noticed that there is violation of certain provisions of the , 1961.
6. Crl.M.C. No. 7522/2018 is filed to quash Annexure-I complaint. It is a complaint filed under Section 29 of the the Kerala Shops and Commercial Establishments Act , 1960 alleging violation of the provisions of the above Act and related Rules. It was also based on an inspection conducted by the Assistant Labour OfÏcer, Adoor on 22.09.2017 at 10.30 a.m.
7. Crl.M.C. No.7537/2018 is filed to quash Annexure-I complaint filed under Section 29 of the Kerala Shops and Commercial Establishments Act , 1960 alleging violation of the provisions of the above Act and related Rules. The Assistant Labour OfÏcer, Adoor inspected the Mount Zion Medical College Hospital, Chayalode, Adoor on 22.09.2017 at 10.30 a.m. and found certain violations of the above Act and related Rules.
8. According to the petitioner, the complaint against the petitioner is unsustainable because the trust in which the petitioner is the Chairman is not arrayed as an accused. Hence these Criminal Miscellaneous Cases are filed.
9. Heard the learned counsel appearing for the petitioner and the learned public Prosecutor.
10. Admittedly, the Mount Zion Medical College Hospital is a trust and the petitioner is the Chairman of the above trust. Crl.M.C. Nos.7521/2018 and 7524/2018 are filed under Section 22 (A) of Act 1948. C of Act, 1948 reads like this:
22C. Offences by companies.— (1) If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was incharge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other ofÏcer
