Courtroom: No Sadism

In a recent case, the Supreme Court held that a director of a company could not be “vicariously” held liable for criminal offences of a company

In a recent case, Ravindranatha Bajpe Vs Mangalore Special Economic Zone Ltd, the Supreme Court of India held that a director of a company could not be “vicariously” held liable for criminal offences of a company.

The court held that the chairman, directors, and other key managerial personnel of a company cannot be automatically held vicariously liable for the offences committed by a company unless specific allegations and averments against them are made with respect to their individual role.

The appellant in the case stated that he is the absolute owner and in possession and enjoyment of certain immovable properties which were adjoining the Mangalore-Bajpe Old Airport Road. The properties had valuable trees on them and was surrounded by a stone wall as a boundary.