Some important cases related to criminal liability of directors

FCS Deepak Pratap Singh | Last updated: 01 June 2022

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This article examines crucial legal precedents concerning the criminal liability of company directors. It highlights that directors cannot be automatically held responsible for a company's offences; specific averments and proof of their active role or responsibility at the time of the offence are necessary. Exceptions exist for Managing Directors or those signing cheques, but generally, vicarious liability requires clear pleading and proof, not mere inference.

CASE-I The Honble Supreme Court in the case of National Small Industries Corp. Ltd. vs. Harmeet Singh Paintal and Ors., 010(2)AC R1221(SC )/ MANU/SC/0112/2010 has enumerated certain principles for arraigning director as an accused in a criminal complaint filed against the company, which are as un

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About the Author

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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