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        Central Excise

        1957 (9) TMI 97 - HC - Central Excise

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        Vicarious criminal liability for company offences requires strict proof of responsibility, consent, connivance, or neglect; acquittal sustained. Vicarious criminal liability for an offence by a company arises only if the prosecution strictly proves that the officer was, at the time of the offence, ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Vicarious criminal liability for company offences requires strict proof of responsibility, consent, connivance, or neglect; acquittal sustained.

                              Vicarious criminal liability for an offence by a company arises only if the prosecution strictly proves that the officer was, at the time of the offence, in charge of and responsible for the company's business, or proves that the offence occurred with the officer's consent, connivance, or neglect. The evidence showed that the secretary only checked accounts and cash and was not in daily control of the milk-selling business, which was run by the clerk. That evidence did not satisfy either statutory basis of liability, so the secretary's acquittal was correctly sustained and the appeal failed.




                              Issues: Whether the Secretary of the society could be convicted for adulteration of milk on the evidence led, either as a person in charge and responsible for the conduct of the society's business or on proof of consent, connivance, or neglect.

                              Analysis: The provisions dealing with offences by a company made two distinct bases of liability. Under the first, the prosecution had to establish that the person sought to be made liable was, at the time of the offence, in charge of and responsible for the conduct of the business of the company. Under the second, liability could arise if the offence was shown to have been committed with the consent or connivance of, or attributable to the neglect of, the officer concerned. The evidence showed only that the Secretary checked accounts and cash and was not in daily control of the actual business of selling milk, which was carried on by the clerk. That evidence was insufficient to satisfy the strict requirements of either limb of liability.

                              Conclusion: The Secretary was not proved to be liable under the section and his acquittal was correctly sustained; the appeal failed.

                              Ratio Decidendi: Vicarious criminal liability of an officer for an offence by a company arises only when the prosecution strictly proves the statutory conditions for responsibility, or proves consent, connivance, or neglect.


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                              ActsIncome Tax
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