TMI Blog2015 (2) TMI 1117X X X X Extracts X X X X X X X X Extracts X X X X ..... ven where vicarious liability is fastened on certain statutes. WHEN the company has not been arraigned as an accused, such an order could not have been passed. We have said so for the sake of completeness. In the ultimate analysis, we are of the considered opinion that the High Court should have been well advised to quash the criminal proceedings initiated against the Appellant and that having not been done, the order is sensitively vulnerable and accordingly we set aside the same and quash the criminal proceedings initiated by the Respondent against the Appellant. - Criminal Appeal No. 1584 of 2007 - - - Dated:- 10-2-2015 - A.K.Goel and Dipak Misra, JJ. JUDGMENT CALLING in question the legal validity of the order dated 30.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On further enquiry, he found that there is a letter issued by Tata Engineering and Locomotive Company (TELCO) on 7.11.2000 that in the course of transit from the company to Bhopal, the said vehicle had met with an accident as a result of which the engine was replaced by another engine. Coming to know of this, the Respondent filed a complaint Under Section 200 of the Code of Criminal Procedure alleging that M/s. Sanghi Brothers (Indore) Ltd., Indore being represented by the Managing Director, Sharad Kumar Sanghi, had suppressed the information and deliberately cheated the Respondent. The learned Magistrate, after following the procedure as contemplated Under Section 202 of the Code of Criminal Procedure, took cognizance of the offence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made against the Appellant read as follows: That the proprietor of M/s. Sanghi Brothers Indore accused Sharad S/o. Sohan Sanghi negligently prepare the accidental vehicle No. 709 L.M. projected the same as new to deliver the complainant causing gain to self and loss to the complainant which is punishable Under Section 420 of the Indian Penal Code 6. BARRING the aforesaid allegation, there is no allegation against him. In the initial statement made Under Section 200 of the Code of Criminal Procedure, the complainant after narrating the facts, has stated thus: Sanghi Brothers Limited run by Mr. Sharad Sanghi committed cheating with the Applicant by delivering accidented vehicle in place of a new one and caused gross financial l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Even for the said purpose, it is obligator on the part of the complainant to make requisite allegations which would attract the provisions constituting vicarious liability. In this regard, reference to a three -Judge Bench decision in S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla and Anr. : (2005) 8 SCC 89 would be apposite. While dealing with an offence Under Section 138 of the Negotiable Instruments Act, 1881, the Court explaining the duty of a Magistrate while issuing process and his power to dismiss a complaint Under Section 203 without even issuing process observed thus: ...a complaint must contain material to enable the Magistrate to make up his mind for issuing process. If this were not the requirement, consequences could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Maharashtra State Electricity Distribution Co. Ltd. v. Datar Switchgear Ltd. : (2010) 10 SCC 479; and GHCL Employees Stock Option Trust v. India Infoline Ltd. : (2013) 4 SCC 505. 8. IN the case at hand as the complainant's initial statement would reflect, the allegations are against the company, but the company has not been made arrayed as a party. Therefore, the allegations have to be restricted to the Managing Director. As we have noted earlier, allegations are vague and in fact, principally the allegations are against the company. There is no specific allegation against the Managing Director. When a company has not been arrayed as a party, no proceeding can be initiated against it even where vicarious liability is fastened on ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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