The Bombay High Court has quashed the criminal complaint and summons issued against four senior officials of ICICI Bank in a case filed by the Pune Municipal Corporation (PMC) alleging evasion of octroi on gold bullion and coins imported into city limits between 2006 and 2009. Justice Dr. Neela Gokhale held that the complaint lacked specific averments attributing any role or involvement to the officials concerned, former CEO and MD Chanda Kochhar, former Deputy Managing Director Nachiket Mor, a legal officer, and a branch manager thereby rendering prosecution against them unsustainable.
The case emanated from a 2009 complaint filed by PMC alleging that ICICI Bank imported gold bullion/coins without paying the requisite octroi, quantified at ?1.27 crore. Summons were issued by the Judicial Magistrate First Class (PMC), Pune on November 20, 2009. The petitioners sought quashing of the proceedings under Sections 398 and 401 of the Bombay Provincial Municipal Corporation Act, which prescribe penalties for octroi evasion and vicarious liability of company officers.
The Court observed that while the statutory regime under the Bombay Provincial Municipal Corporation Act of 1949 creates vicarious liability, such liability can be fastened only when the complaint contains clear, specific allegations demonstrating an individual’s role in the management and conduct of the company’s business. Relying on settled Supreme Court precedents on corporate criminal liability, the Court noted that the PMC complaint contained no specific role or incriminating attribution to the accused officials, and merely naming them on the basis of designation was insufficient.
Accordingly, the Court quashed the proceedings only against the individual officers, clarifying that the complaint shall continue against ICICI Bank. All contentions of the parties before the trial court have been left open.
Appearances:
Mr. Faisal Ali Sayyed i/by M.K. Ambalal, for the Petitioners.
Mr. Abhijit P. Kulkarni a/w Sweta Shah and Abhishek Roy, for the Respondent – PMC.
