Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2004 (7) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (7) TMI 368 - SC - Companies LawOffences and prosecution - Held that:- Matters are referred to a Constitution Bench for an authoritative pronouncement on the subject. Having recourse to the principle of purposive construction as has been held in Balram Kumawat v. Union of India [2003 (8) TMI 221 - SUPREME COURT OF INDIA] an attempt should be made to make section 56 of the Act workable. It is possible to read down the provisions of section 56 to the effect that when a company is tried for commission of an offence under the Act, a judgment of conviction may be passed against it, but having regard to the fact that it is a juristic person, no punishment of mandatory imprisonment can be imposed. Furthermore, even if the company cannot be punished, the same may not mean that the other persons referred to under sub-sections (1) and (2) of section 68 cannot also be punished.
|