INDERJIT C. PAREKH & ORS versus V. K. BHATT & ANR.

INDERJIT C. PAREKH & ORS versus V. K. BHATT & ANR.

Section 4(1)(a)(iv) of the Bombay Relief Undertakings (Special Provisions) Act, 1958 does not grant immunity or stay of proceedings to directors or officers for personal liability incurred before the undertaking was declared a relief undertaking; liability for default in Provident Fund contributions is personal to the directors and officers and prosecution may proceed.

Parties
Appellant: Inderjit C. Parekh; Appellant: Appellant 2; Appellant: Appellant 3; Appellant: Appellant 4; Appellant: Appellant 5; Appellant: Appellant 6; Respondent: V. K. Bhati; Respondent: Respondent 2
Jurisdiction
India
Judgment Date
08 January 1974
Procedural Posture
Criminal Appeal / Supreme Court Appeal by Special Leave
Outcome
Appeal dismissed
Legal Topics
Personal Liability of Directors, Relief Undertakings Act, Stay of Prosecution, Provident Fund Contribution
Criminal Law Labour Law Corporate Law Personal Liability of Directors Relief Undertakings Act Stay of Prosecution Provident Fund Contribution

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Parties

Inderjit C. Parekh

Appellant

Appellant 2

Appellant

Appellant 3

Appellant

Appellant 4

Appellant

Appellant 5

Appellant

Appellant 6

Appellant

V. K. Bhati

Respondent

Respondent 2

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Appeal by Special Leave

Legal Issues

  1. 1 Whether the personal liability of directors and officers is covered by section 4(1)(a)(iv) of the Bombay Relief Undertakings (Special Provisions) Act, 1958 so as to grant immunity and stay of prosecution for default in payment of Provident Fund contributions.

Ratio Decidendi

Section 4(1)(a)(iv) of the Bombay Relief Undertakings (Special Provisions) Act, 1958 does not grant immunity or stay of proceedings to directors or officers for personal liability incurred before the undertaking was declared a relief undertaking; liability for default in Provident Fund contributions is personal to the directors and officers and prosecution may proceed.

Court Disposition

Appeal dismissed

Orders

  • The prosecution against the appellants shall proceed expeditiously.