Indian Penal Code, 1860
Sections 420 and 409 read with Section 34—Order issuing process against petitioners—Challenged—Allegation of withholding of a portion of the salary/emoluments of employees—Petitioners - accused Nos. 1 to 9 were sought to be prosecuted for being Directors/Officers of the AIL, the Company—To constitute an offence of cheating, the intention of the accused should be dishonest since the inception of the transaction—Act of the company (AIL) to deduct the salary/emoluments was in purported exercise of its authority as an employer even though such deduction was illegal—Ingredients of offence publishable under Section 409 of IPC not made out—Even AIL, the company has not been impleaded as an accused—Prosecution of accused by invoking principle of vicarious liability, in the absence of any statutory mandate, cannot be sustained—Magistrate, while issuing process against accused persons, not considered the provisions of Section 202(1) of CrPC—Many of accused were arrayed in their erstwhile capacity as “the then Directors/Managers” and an omnibus address was furnished—Continuation of prosecution of petitioners amounts to abuse of process of the court and quashment of the same would secure the ends of justice—Petition allowed.
[Paras 16, 17, 20, 21, , 23, 25, 26, 29 & 31]