Home Case Index All Cases Customs Customs + HC Customs - 2022 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 667 - HC - CustomsLevy of penalty on deceased husband of appellant (non-executive director of the company) - Advance License scheme - non-fulfilment of export obligation on the part of the company - defaulter under Foreign Trade (Development and Regulation) Act, 1992 - vicarious liability of Director of the company - HELD THAT:- There is nothing in the impugned orders as to what was the role of each director and how Mr. Bhatt was a directing mind or will of TPI. This would run contrary to the principle of vicarious liability which requires detailing the circumstances under which a director of a company can be held liable. No doubt, a corporate entity is an artificial person which acts through its officers, directors, managing director / chairman etc. It is the cardinal principle of criminal jurisprudence that where there are allegations of vicarious liability, then there has to be sufficient evidence of the active role of each director. There has to be a specific act attributed to a director or the person allegedly in control of management of the company, to the effect that such a person was responsible for the acts committed by or on behalf of the company. From the impugned orders, it is clear that the entire charge undisputedly, is levelled against TPI for not fulfilling the advance licence obligations. No notice was admittedly issued to petitioner in petitioner's name. That being the case, there was a clear violation of the principles of natural justice. In point of facts, prejudice has been actually caused to Mr. Bhatt. This is so because the show-cause-notice was not issued in the name of Mr. Bhatt or even to his correct address. Even show-cause-notice issued to TPI did not contain specific allegation against Mr. Bhatt to which he could reply. No opportunity as such was given to Mr. Bhatt to represent against the proposed imposition of penalty. Obviously, Mr. Bhatt was not heard before the impugned orders were passed whereby penalty has been imposed upon him. The proceedings against Mr. Bhat were void ab initio. If only a notice had been sent to Mr. Bhatt identifying the specific acts attributable to him, Mr. Bhatt could have represented against the imposition of any penalty. He could have placed on record various facts and circumstances to show that even if any offence was committed by TPI, he had no hand in it. All these circumstances, if he were able to establish them, would have absolved him of the liability of penalty. Even on the question of prejudice, the impugned order imposing the penalty on Mr. Bhatt could not be sustained. Petition disposed off.
|