- (1.) One Executive Engineer of the Tamil Nadu State Electricity Board made a surprise inspection of the premises of first respondent -Rasipuram Textile Mills. Allegedly, theft of electrical energy was detected.
(2.) A criminal prosecution was lodged not only against the company but also against its Managing Director and other Directors purported to under Section 39(1) and 44(1)(c) of the Indian Electricity Act, 1910.
(3.) Learned trial Judge, recorded a judgment of conviction against the accused. So far as the Directors of the Company are concerned, the learned trial Judge convicted despite noticing the provisions contained in Section 49A of the Indian Electricity Act, 1910, observing: From the above, it is clear that, all the persons responsible for the administration of a company are liable for the offence committed by the Company. If anybody disowns the liability and claims it has happened without his knowledge or despite the sincere efforts the offence has been committed, then it is for the concerned accused to prove the same. On this basis, the Managing Director and the other Directors A2 to A 10 were also included being the responsible persons of A! Mill. A 11 was included as Electrical Supervisor and A 12 as Spinning Master and A 13 as Electrical Helper were included by P.W.8 Thiru Jayachandran in the final report.;