Service Of Summons Upon Company Under BNSS Can Be Served Upon Its Director As Well: Allahabad HC
The Allahabad High Court pointed out the difference between the procedure of service of summons upon a company arraigned as an accused under the CrPC and newly implemented BNSS.
The Court clarified that Section 65 of the Bhartiya Nagarik Suraksha Sanhita, 2023 (BNSS) prescribed that summons of a company or corporation may be served through the Director apart from other Officers of the company, while under Section 63 of the CrPC, the word ‘Director’ was missing.
A Single Bench of Justice Arun Kumar Singh Deshwal observed, “It is also relevant to mention here that the corresponding provision to Section 63 of Cr.P.C. in Bhartiya Nagarik Suraksha Sanhita, 2023 (in short the BNSS) is Section 65. Section 65 of the BNSS also prescribes that summons of a company or corporation may be served through the Director apart from the Manager, Secretary and other Officers of the company. In Section 63 Cr.P.C. word Director was missing.”
Advocate Nikhil Mishra appeared for the applicants, while AGA Rajeev Kumar Singh represented the opposite parties.
The Firm (M/S Partha Textiles) in this case was arrayed as an accused, but a summons was issued to its partner personally, which the Court explained was not a proper service for the firm because the partner was not impleaded as an accused in the impugned complaint.
The Court quashed the summoning order as well as non-bailable warrant issued against the partner and explained that “if a company is arraigned as accused in a complaint, then summons ought to be issued to the company through its Principal Officer or Local Manager as mentioned in Section 63 Cr.P.C and after service of summons upon the company, as per Section 63 Cr.P.C., the company can appoint any of his representatives as per Section 305 Cr.P.C.”
As per Section 141 of the Negotiable Instrument Act (N.I. Act), if an offence under Section 138 N.I. Act was committed by a company or firm, then it can be prosecuted, but its Director or Partner can also be vicariously liable for punishment along with the company if they are responsible for the conduct of the business of the company or offence has been committed with the consent or connivance of any Director or Partner or other Officers of the company.
The Court clarified that when a company was arraigned as an accused in a complaint, the issuance of summons must be directed to the company through its Principal Officer or Local Manager as stipulated in Section 63 of the Cr.P.C.
Consequently, the Bench held, “It is also apposite to mention that though on commencement of the BNSS, the provision of Cr.P.C. has been repealed and Section 65 of the BNSS has come into force in place of Section 63 of Cr.P.C. regarding service of summons upon a company, corporation and firm, but Section 529 of the BNSS provides, proceeding, trial or application pending before the date of commencement of the BNSS will continue as per the provision of Cr.P.C. Therefore, in the present case despite the repeal of Cr.P.C. by the BNSS, the court below will proceed in accordance with the procedure of Cr.P.C. as mentioned under Sections 63 and 305 Cr.P.C.”
Accordingly, the High Court partly allowed the application.
Cause Title: M/S Parthas Textiles & Anr. v. State of U.P. & Anr. (Neutral Citation: 2024:AHC:111864)