S.K. ALAGH versus STATE OF U.P. & ORS.

S.K. ALAGH versus STATE OF U.P. & ORS.

Vicarious liability for criminal breach of trust under Section 406 IPC is not extendable to directors or officers of a company unless expressly provided by statute; since the company was not made an accused and the property was entrusted to the company, not to the appellant personally, no offence is disclosed against the appellant.

Parties
Appellant: S.K. Alagh; Respondent: State of U.P.; Respondent: Alok Kumar Aggarwal
Jurisdiction
India
Judgment Date
15 February 2008
Procedural Posture
Criminal Appeal / Final Judgment
Outcome
Appeal allowed
Legal Topics
Vicarious Liability, Criminal Breach of Trust
Criminal Law Vicarious Liability Criminal Breach of Trust

Case Brief

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Parties

S.K. Alagh

Appellant

State of U.P.

Respondent

Alok Kumar Aggarwal

Respondent

Procedural Posture

Criminal Appeal / Final Judgment

Legal Issues

  1. 1 Whether vicarious liability under Section 406 IPC can be extended to directors or officers of a company who are not directly charged for criminal breach of trust.

Ratio Decidendi

Vicarious liability for criminal breach of trust under Section 406 IPC is not extendable to directors or officers of a company unless expressly provided by statute; since the company was not made an accused and the property was entrusted to the company, not to the appellant personally, no offence is disclosed against the appellant.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment set aside
  • Respondent No.2 to bear appellant’s costs quantified at Rs.1,00,000 (Rupees one lac only)