CRIMINAL LIABILITY OF AUTOMOBILE MANUFACTURERS WITHSPECIAL REFERENCE TO VEHICLE RECALLS IN INDIA

Introduction
One of the many reasons that the Courts have given, for not imposing criminal liability on corporations
is that, even if a corporation is found guilty, who is to serve the punishment? As a result, the
Courts only impose fines on companies, which merges criminal liability with that of the civil one.
The recent amendment of the Companies Act2 also needs to be looked into which will create complex
legal issues and further complicate the matter of corporate criminal liability. The 2013 Act introduces
the concept of One Person Company3, thereby opening the possibility of companies serving punishment
of imprisonment. Here, some might argue that, an individual who commits an offence , does
so in his personal capacity and there is no express need to involve a company in it. Then again, the
counter argument will be raised, what if the person committed the act with a motive to protect, preserve
or advance his business interests? Both the schools of thought are right in their own place. Also
even if OPCs are brought under the ambit of criminal law, they will plead the defence of equality –
why criminal law is invoked against OPCs only and not the other types of companies. Thus, to sum
up, it would not be wrong to say that
OPC has stirred the hornet’s nest as far as corporate criminal liability is concerned. Legal provisions
do exist in the Indian Penal Code for punishing companies, where many offences use the word
‘person’4 but, for that to happen, the statute would have to be interpreted liberally, whereas Penal
statutes are to be interpreted strictly.