If a company indulges in wrongful deeds then not only its officials but even the company itself can be prosecuted for criminal offenses, the Delhi High Court has said.
Dismissing Morgan Tectronics’ petition challenging a special CBI court order, which had allowed criminal proceedings against it in a forgery case, the court rejected the company’s plea that being a non-living body it cannot have mens rea, or wrong mind, the basic requirement for criminal prosecution.
Justice S N Dhingra said, “Board of Directors of a company is considered company’s mind and acting arms. Where for the benefit of the company, the Board of Directors decides to create false documents, falsify the balance sheet, it is an act of the company as well, as a legal person, apart from the act of individuals involved in the act.
