prosecution can be validly ordered against company and charg

Last updated: 11 January 2008

Court :
SUPREME COURT

Brief :
From the statutory provisions, it is clear that to hold a person responsible under the Act, it must be shown that he/she is a ‘principal officer’ under section 2(35) of the Act or is ‘in charge of’ and ‘responsible for’ the business of the company or firm. It is also clear from the various cases that where necessary averments have been made in the complaint, initiation of criminal proceedings, issuance of summons or framing of charge cannot be held illegal and the Court would not inquire into or decide correctness or otherwise of the allegations levelled or averments made by the complainant. It is a matter of evidence and an appropriate order can be passed at the trial. Once a statute requires to pay tax and stipulates period within which such payment is to be made, the payment must be made within that period. If the payment is not made within that period, there is default and an appropriate action can be taken under the Act.

Citation :
Madhumilan Syntex Ltd.* v. Union of India CRL. APPEAL NO 1377 OF 1999 DECIDED ON 23-3- 2007