Directors not vicariously liable for crime of company – Supreme Court

M/s. Thermax Ltd. & Ors. Vs. K.M. Johnny & Ors. (Supreme Court of India)- Though civil law recognises the principle of ‘vicarious liability’ of directors of companies, the concept is not acknowledged in criminal law, the Supreme Court stated while allowing the appeal case, M/s Thermax Ltd Vs K M Johnny. The company was accused of criminal offences and the directors were also named in the complaint case moved by a contracting party due to disputes over the termination of the agreement. The Bombay high court allowed the prosecution to proceed. On appeal, the Supreme Court quashed ...