Should criminal proceedings against a company be quashed because no natural person has been identified and arraigned alongside it?
Coram: Justice J.B. Pardiwala · Justice Manoj Misra
No. All that is required at that stage is that an offence be made out, and it is made out irrespective of identification; arraignment, being the procedural corollary of identification, is equally not required where no provision imposing vicarious liability is involved.
Indian Penal Code, 1860 — s.120B — s.420 — Prevention of Corruption Act, 1988 — s.13 — Code of Criminal Procedure, 1973 — s.482 — Corporate criminal liability — Attribution of mens rea — Corporate criminal liability — Attribution of mens rea — Three stages of inquiry — Held: A corporation possesses mens rea only through attribution, determined by a sequential inquiry through three stages: the constitutional documents and rules implied by company law; express or implied delegation of the power to do the act; and, failing both, a special rule of attribution fashioned from the purpose of the provision. (¶143, 150) Corporate criminal liability — Mens rea — Not assembled from partial states of mind — Held further: The requisite mens rea must be found, in full, within at least one natural person before it can be attributed to the corporation; it cannot be assembled by combining the partial states of mind of different individuals. (¶178) Code of Criminal Procedure, 1973 — s.482 — Quashing — Identification and arraignment not required — Held further: Proceedings against a corporation are not liable to be quashed merely because no natural person has been identified or arraigned; attribution requires going into the niceties of a given case, which can legitimately be considered only at the trial. Appeal dismissed. (¶187, 193, 198)
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