Noting that “the concept of ‘vicarious liability’ is unknown in criminal law”, the Supreme Court ruled that criminal proceedings are not maintainable in the absence of any specific allegation against the members of the board of directors or senior executives of a company.
Ruling for the appellant in M/s Thermax Ltd & Ors v KM Johny & Ors, a two-judge bench of the court held that Bombay High Court was wrong in allowing a lower court to call for a criminal report in a dispute that contained flavours of a civil dispute.
The dispute in the case centred on a contract between Thermax and two companies, owned by KM Johny, that built tanks for liquefied petroleum gas. Thermax cancelled the contract in May 1995 allegedly after the companies failed to deliver on the contract.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
