Business Standard

Yet another ruling on director liability

Unless the culture of compliance seeps into enforcement, judgments would be mere essays


Somasekhar Sundaresan
The Supreme Court has spoken yet again — quashing criminal proceedings initiated against the managing director of a company that runs a hotel in New Delhi — about the liability of a managing director in a company charged with crime for no reason other than his being the managing director. Yet, whether this would lead to any reform in the conduct of enforcement agencies is a question that could end up being rhetorical.

The facts seem straight out of the movie October.  A visitor to the hotel fell from the sixth floor to the fourth floor. It was found that a
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Aug 28 2019 | 8:26 PM IST

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