Chapter XXIV
Section 305 CrPC: Procedure when corporation or registered society is an accused
New Law Update (2024)
Section 340 BNSS
TRIAL COURT
Punishment
Procedural – Investigation / Inquiry
Cognizable?
Bailable?
Compoundable?
Bare Act Text
(1) In this section, “corporation” means an incorporated company or other body corporate, and includes a society registered under the Societies Registration Act, 1860 (21 of 1860).
(2) Where a corporation is the accused person or one of the accused persons in an inquiry or trial, it may appoint a representative for the purpose of the inquiry or trial and such appointment need not be under the seal of the corporation.
(3) Where a representative of a corporation appears, any requirement of this Code that anything shall be done in the presence of the accused or shall be read or stated or explained to the accused, shall be construed as a requirement that that thing shall be done in the presence of the representative or read or stated or explained to the representative, and any requirement that the accused shall be examined shall be construed as a requirement that the representative shall be examined.
(4) Where a representative of a corporation does not appear, any such requirement as is referred to in Sub-Section (3) shall not apply.
(5) Where a statement in writing purporting to be signed by the managing director of the corporation or by any person (by whatever name called) having, or being one of the persons having the management of the affairs of the corporation to the effect that the person named in the statement has been appointed as the representative of the corporation for the purposes of this section, is filed, the Court shall, unless the contrary is proved, presume that such person has been so appointed.
(6) If a question arises as to whether any person, appearing as the representative of a corporation in an inquiry or trial before a Court is or is not such representative, the question shall be determined by the Court.
Important Sub-Sections Explained
Section 305(1)
This sub-section is crucial as it defines what constitutes a “corporation” for the purposes of this section, encompassing incorporated companies, other bodies corporate, and societies registered under the Societies Registration Act, 1860, thereby clarifying the scope of its applicability.
Section 305(5)
This sub-section provides a practical mechanism for proving the appointment of a corporate representative in court. By allowing a statement signed by a managing director or a person managing the corporation’s affairs to be filed, it creates a legal presumption of valid appointment unless proven otherwise, simplifying the procedural burden.
Landmark Judgements
Standard Chartered Bank v. Directorate of Enforcement (2005):
This landmark Supreme Court judgment settled the long-standing debate on the criminal liability of corporations in India, affirming that a corporation can be prosecuted for offences that require a mens rea. It clarified that even if a mandatory sentence of imprisonment is prescribed, a corporation can still be prosecuted, and the court can impose a fine instead.
Iridium India Telecom Ltd. v. Motorola Inc. (2011):
The Supreme Court reiterated that companies and corporate entities can indeed be prosecuted for criminal offences. It clarified that a corporation, as a legal entity, can have the requisite mens rea imputed to it from the acts and intentions of its directors or agents, particularly those who are in charge of its affairs.