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Directors cannot be ordered only because the firm violates the law: SC

New Delhi: The Supreme Court has requested an investigation and demanding institutions not to continue mechanically against the company’s wrong director only because of the post held and said the prosecution that can be avoided leads to insults and loss of reputation in the community.
The delay of prosecution and summons issued for the Director of the Company suspected of failing to pay a minimum wage to several workers, RS Hospital RS Reddy and Sanjiv Khanna said, “Someone cannot be prosecuted and punished only because of their status or position as Director, Manager, Secretary or Officer Others, in a company except the violation in question is committed to its agreement or tubes or caused by neglecting in their part.
“Important clarification will offer assistance to people who hold this position.
Part 22C from the Minimum Wage Law provides that “if the person who committed a violation under this law is a company, everyone who at that time committed a violation, responsible for, and responsible, the company for the company’s business behavior as well The company will be considered guilty of violations and must be borne to continue and be punished accordingly “.
It is said that the right role of the officers who continued must be described by prosecution.
SC said representative responsibilities would only be interested when violations were carried out with approval, ketone, or caused by the neglect of the Director, Manager, Secretary, or other company officers and not only because the person held a responsible post at the company.
Judge Reddy and Khanna said that they arrested the company’s directors and officers, without them having a remote role even in violations of alleged violations of law by the company, full of serious consequences and should be avoided by all means.
“The initiates of prosecution and calling defendants for the Stand Court have serious consequences.
They extend from monetary losses to insults and destruction in society, sacrifice of time and effort to prepare defense and uncertain time anxiety.
Criminal law should not be moved as ordinary things or without Inquiry of adequate facts and need to be mere suspicion, or when violations of law are doubtful, “Bench said.
“This is the duty and responsibility of public officers to continue responsibly and ensure the right and true facts.
Legal execution without acquaintances in accordance with the provisions of the legal and comprehensive taste of their application can lead to innocent people demanded,” he said.

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