| Case ID |
15ab7d0e-e835-4931-8bb0-39c3ea3eb24b |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeals Nos. 1748 to 1751 and 1944 of 1999, |
| Decision Date |
May 05, 2005 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled that a corporation cannot be prosecuted for offences that require a mandatory term of imprisonment. This decision stems from the interpretation of relevant sections of the Foreign Exchange Regulation Act, which imposes penalties that include imprisonment and fines. The court emphasized that while companies are liable for certain offences, the imposition of custodial sentences is not feasible, thus necessitating legislative amendments to allow fines as sole penalties for corporate offenders. The court concluded that the legislative intent must be respected, and the interpretation should align with the realities of corporate legal responsibility. |
| Summary |
In this landmark case, the Supreme Court of India addressed the legal complexities surrounding corporate criminal liability, specifically focusing on the Foreign Exchange Regulation Act, 1973. The court examined whether a corporation could face prosecution for offences that mandated imprisonment. The ruling clarified that while corporations can be held accountable for violations, the mandatory nature of custodial sentences presents challenges since corporations cannot serve prison time. This case highlights the need for legislative reform to ensure that penalties are appropriately tailored to the nature of corporate entities, emphasizing the importance of adapting legal frameworks to contemporary business realities. This decision sets a precedent for future cases involving corporate liability and underscores the necessity for clear legal guidelines to navigate the intersection of corporate governance and criminal law. Key terms include corporate liability, criminal law, Foreign Exchange Regulation Act, and legislative reform. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
Santosh Hegde,
K.G. Balakrishnan,
D.M. Dharmadhikari,
Arun Kumar,
B.N. Srikrishna
|
| Lawyers |
Not available
|
| Petitioners |
STANDARD CHARTERED BANK AND OTHERS
|
| Respondents |
Not available
|
| Citations |
2006 SLD 727 = (2006) 93 TAX 106
|
| Other Citations |
Asstt. Commissioner v. Velliappa Textiles Ltd. [2003] 11 SCC 405,
State of Maharashtra v. Jugamander Lal [1966] 3 SCR 1
|
| Laws Involved |
Pakistan Penal Code, 1860,
Foreign Exchange Regulation Act, 1973
|
| Sections |
11,
13,
18(1)(a),
18A,
19(1)(a),
44(2),
50,
51,
56(1)(ii),
56(i),
56(ii)
|