Calcutta High Court Quashes Criminal Case Over Commercial Dispute
· India · Indian Express, NDTV
The Calcutta High Court ruled that criminal law cannot be used as a recovery mechanism in commercial disputes involving defective goods. Justice Uday Kumar heard a plea filed by a company and its executives seeking to quash criminal proceedings stemming from a business dispute over automobile accessories. The court held that a civil breach of contract cannot be converted into a criminal offence without clear evidence of personal participation. The bench noted that criminal courts cannot summon company directors or senior management officers merely for holding high office unless specific unambiguous allegations are proven. The underlying dispute involved an order placed in 2017 for GPS tracking and automobile products, where certain supplied goods were found defective and advance payments were allegedly unrefunded.
Why it matters
The ruling provides legal protection for corporate directors and management against the weaponisation of criminal proceedings in commercial contract disputes.
Read the original report — Indian Express
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.