Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Offence by Company or Corporate bodyDoctrine of impossibility of performance Company Laws Corporate criminal liability |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Matter Referred to Larger Bench |
Headnote | Company Laws: Corporate criminal liability-Offence by Company or Corporate body-Punishable with mandatory sentence of imprisonment coupled with fine-Prosecution under-Held: When statute provides for imprisonment and fine for offence by Company, even though Company being juristic person cannot be sentenced to imprisonment, Court can impose punishment of fine-Company is not immuned from any prosecution for serious offence-Such discretion can be read into statute-Foreign Exchange Regulation Act, 197 3-Section 56 (1)(i). Doctrine of impossibility of performance-Maxim-Lex non cogit ad impossibilia-Applicability of-Interpretation of Statutes. Appellant-Company were issued notices for prosecution under Section 56 of the Foreign Exchange Regulation Act, 1973. Appellants contended that being a company no criminal action can be initiated against them under Section 56 because the section prescribes a minimum sentence of imprisonment and fine, and a company cannot be imprisoned. The question which arose for consideration was whether Company or Corporate body being a juristic person could be prosecuted for offence for which mandatory punishment prescribed is imprisonment and fine. In appeal before the three-Judge-bench of this Court, the Bench doubted the correctness of Assistant Commissioner, Assessment-II Bangalore and Ors. v. Velliappa Textiles Ltd and Anr's case which held that company cannot be prosecuted for offences for which mandatory sentence is imprisonment coupled with fine; and as the Company cannot be imprisoned being artificial person, the Court cannot impose only fine; and referred the matter for reconsideration of the correctness of the view expressed by the majority in Velliappa's case before the present Constitution Bench. |
Judge | Hon'ble Mr. Justice B.N. Srikrishna Hon'ble Mr. Justice D.M. Dharmadhikari Honble Mr. Justice K.G. Balakrishnan |
Neutral Citation | 2005 INSC 259 |
Petitioner | Standard Chartered Bank And Ors. Etc. |
Respondent | Directorate Of Enforcement And Ors. Etc. |
SCR | [2005] Supp. (1) S.C.R. 49 |
Judgement Date | 2005-05-05 |
Case Number | 1748 |
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