Can FIR be quashed against Director of Company, if he can satisfy HC that he was not responsible? Yes

When a criminal complaint case or FIR is filed against a Company, often its Directors are also made accused.

Some Directors may be non- active directors and may not be responsible for day to day affairs of the Company.

Then they may not be liable in criminal law.

Earlier there were conflicting views.

In one case it was held that High Court cannot quash FIR because whether a Director was responsible for day to day affairs of Company is question of fact which has to be decided only in trial.

Therefore, it was held that it is not open to HC to quash the complaint under Sec.482 of Cr. PC.

But now recently in case of Gunmala reported in 2014 SCALE 270
It has been held that if Director can show to High Court on basis of indisputable evidence that he was not responsible for day to day affairs of the company, then the complaint can be quashed by HC under Sec.482 of Cr.P.C.

Thus in each case, whether complaint can be quashed or not depends on 1) Indisputable evidence 2) Satiafaction of High Court.

For more accurate details refer to actual judgement of Supreme Court in Gunmala case. 

Haresh Raichura
27/12/2014


Copyright : Haresh Raichura 2014. All Rights reserved.