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GHCL Employees Stock Option Trust Vs. India Infoline Ltd. (2013) 4 SCC 505

Case Brief : In a case of Criminal Breach of Trust, Cheating, Falsification of Accounts, Criminal Conspiracy and Common Intention against the Managing Director, Company Secretary and Directors of India Infoline Ltd., it has been held by the Hon’ble Supreme Court in the Judgment titled as “GHCL Employees Stock Option Trust Vs. India Infoline Ltd. (2013) 4 SCC 505; that for making out a case under Section 406, 409, 420, 477-A, 34, 120-B of IPC against the Managing Director, Company Secretary and Directors of the Company, the complaint should contain specific allegation against them as to with whom he interacted. Concept of vicarious liability is unknown to criminal law. Simple bald and vague allegations that they are looking after day-to-day affairs of the company is not enough. Summoning of an accused in the criminal case is a serious issue, which cannot be issued as a matter of course. The Magistrate has to record his satisfaction with regard to the existence of a prima facie case on the basis of specific allegations made in the complaint supported by satisfactory evidence and other material on record. Judicial process cannot be an instruments of oppression or needless harassment. Vindication of majesty of justice and maintenance of law and order in the society are the prime object of criminal justice system. Accordingly, the Hon’ble Supreme Court held that issuance of summons to Managing Director, Company Secretary and Directors were illegal and abuse of the process of law and further held that the Hon’ble High Court had rightly quashed the summons against the Managing Director, Company Secretary and Directors of the Company. The Hon’ble Supreme Court upheld the decision of the Hon’ble High Court.

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