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2013 (2) TMI 546 - HIGH COURT OF JHARKHANDVicarious liability – Whether director of a company would be liable for the offence of company – Company violated the provisions of the Bihar Finance Act in submitting their sales tax returns – FIR was lodged against the directors who are the petitioners – Held that:- From bare perusal of section 49 of the Bihar Finance Act it is apparent that it does not provide for any vicarious liability of a person against whom no role is assigned in commission of any offence under this section. No role is assigned against the petitioners in the entire FIR and the allegation is only against the companies specifically – No offence can be said to survive against the petitioners and the prosecution of the petitioners is fit to be quashed on this score as well. Further the case of Maharashtra State Electricity Distribution Co. Ltd. [2010 (10) TMI 83 - SUPREME COURT OF INDIA] is relevant here, wherein it was decided that it is trite law that wherever by a legal fiction the principle of vicarious liability is attracted and a person who is otherwise not personally involved in the commission of an offence is made liable for the same, it has to be specifically provided in the statute concerned – As even on the plain reading of the FIR, there is no role assigned to the directors, the continuance of the criminal proceeding against them cannot be sustained in the eyes of law - prosecution of the petitioners pursuant to the FIR quashed - writ application allowed.
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