Sanjay Dutt vs State Of Haryana 2025 INSC 34 – Vicarious Liability – Company Directors

Principle Of Vicarious Liability – There is no vicarious liability unless the statute specifically provides so. Thus, an individual who has perpetrated the commission of an offence on behalf of a company can be made an accused, if the statute provides for such liability and if there is sufficient evidence of his active role coupled with criminal intent. The primary responsibility is on the complainant to make specific averments as are required under the law in the complaint so as to make the accused vicariously liable. For fastening criminal liability on an officer of a company, there is no presumption that every officer of a company knows about the transaction in question. (Para 13) Mere authorization of an act at the behest of the company or the exercise of a supervisory role over certain actions or activities of the company is not enough to render a director vicariously liable. There must exist something to show that such actions of the director stemmed from their personal involvement and arose from actions or conduct falling outside the scope of its routine corporate duties. (Para 12)

Code of Criminal Procedure 1973 – Section 156(3), 200 –When jurisdiction is exercised on a complaint petition filed in terms of Section 156(3) or Section 200 of the CrPC, the Court concerned should remain vigilant & apply its mind carefully before taking cognizance of a complaint. (Para 15)

Punjab Land Preservation Act, 1900 – Section 4,19- The complaint lodged by the Range Forest Officer under Section 4 read with Section 19 of the Act- SC held: There are no allegations worth the name in the complaint that the three appellants before us are directly responsible for uprooting of the trees with the aid of Bulldozers or JCB machines or causing damage to the environment- The impugned complaint and order taking cognizance of the said complaint quashed.