| Case ID |
edc7b34d-e4a8-4de9-b4b5-91c1d13c8169 |
| Body |
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| Case Number |
Crl. Misc. No. 52233-B of 2022 |
| Decision Date |
Dec 08, 2022 |
| Hearing Date |
Dec 08, 2022 |
| Decision |
The Lahore High Court confirmed the pre-arrest bail previously granted to Kabeer Akbar, the Chief Executive Officer of NORD (Private) Limited, in relation to a case involving the dishonor of a cheque issued to Dost Steel Mills Limited (DSML) under Section 489-F of the Pakistan Penal Code. The court emphasized that both Kabeer Akbar and NORD could be prosecuted for the alleged offence, as the corporate entity does not possess immunity from criminal liability. The court noted that the dishonored cheque was for a significant amount of Rs. 3,000,000, which included arrears and an advance for a consignment. The court found the petitioner’s arguments regarding malice in the FIR credible, thus granting him pre-arrest bail subject to the condition of furnishing a bail bond. |
| Summary |
This case revolves around the issue of corporate criminal liability, specifically concerning the dishonestly issued cheque under Section 489-F of the Pakistan Penal Code. The Lahore High Court deliberated on whether a corporation can be prosecuted for issuing a bad cheque and whether the CEO, Kabeer Akbar, can be held criminally liable for the actions of the company. The court concluded that corporations cannot evade criminal liability based on the argument of separate legal identity. This ruling is significant as it reflects the evolving stance on corporate accountability, making it imperative for corporate officers to ensure compliance with legal standards to avoid personal liability. The decision underlines the importance of understanding corporate law and the responsibilities of directors and officers within their entities. This case is pivotal for legal practitioners, corporate entities, and stakeholders engaged in business transactions, emphasizing the necessity for adherence to financial obligations and the implications of negligence in corporate governance. |
| Court |
Lahore High Court
|
| Entities Involved |
NORD (Private) Limited,
Dost Steel Mills Limited
|
| Judges |
TARIQ SALEEM SHEIKH, J.
|
| Lawyers |
Mian Tabassum Ali, Advocate,
Hafeez Saeed Akhtar,
Haider Rasool Mirza
|
| Petitioners |
KABEER AKBAR
|
| Respondents |
STATE etc.
|
| Citations |
2023 SLD 1258,
2023 PLJ 446
|
| Other Citations |
[1917] 2 KB 836 (at p. 845),
[1915] AC 705,
[1957] 1 QB 159,
[1972] AC 153,
[1995] 2 AC 500,
[2000] QB 796,
[2011] EWCA Crime 2527,
212 U.S. 481 (1909),
[(2005) 4 SCC 530],
AIR 2011 SC 20,
AIR 2015 SC 923,
PLD 1977 Karachi 183,
1980 PCr.LJ 429,
1981 SCMR 573,
PLD 2016 SC 769
|
| Laws Involved |
Criminal Procedure Code (V of 1898),
Pakistan Penal Code, 1860
|
| Sections |
498,
498-A,
489-F
|