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Where there is a mention of a criminal case, all we think of is a person who committed crime like theft, murder, sexual assault, etc. Can you think of a criminal case against a company? If the company can be considered a separate entity in the eyes of law, can it be prosecuted in a criminal case? Can you initiate a criminal case against a company? Here, we are discussing the possibilities of a company being accused in a criminal case, and whether an FIR can be registered against a company. 

Understanding “Company”

A company is a group of people associated for running a business. Such a business could be manufacturing products, assembling certain goods, providing services, or a mix of both. After incorporation, a company gains a separate entity, which makes it stand out from other kinds of businesses. The juristic personality of a company helps the people acting on behalf of the company to evade liability in certain cases, mostly financial. Here, the question arises, what happens in a criminal case against a company? How do you put a company in jail? The said aspect of criminal case against a company has been discussed hereunder. 

Concept of FIR

While Section 173 of the Bharatiya Nagarik Suraksha Sanhita lays information to the police in case of cognizable offence, it does not use the term expressly. The term “First Information Report” (FIR) has been used in Section 230 of BNSS 2023 wherein the copies of documents to be handed over to the accused have been listed. Since an FIR can be registered only in cognizable offences, serious criminal cases punishable with imprisonment above 3 years are more of human actions. 

FIR against a Company

An FIR may be registered against a company if the offences alleged against such company are cognizable. A company may be the sole accused, which is rare. It can be one of the many accused persons. Usually, when an offence is committed by a person in his/her official capacity while representing a company, in such cases, FIR against a company may be registered. Mostly, in case of economic offences wherein huge transactions are done in the name of a company which end up being under the radar due to involvement in a criminal case, FIR may be registered against the company. 

Criminal Case against Company under Bharatiya Nagarik Suraksha Sanhita

Section 65 of the BNSS lays about the service of summons on corporate bodies, firms, and societies. It states that summons against a company may be addressed to its Director, Manager, Secretary or other officer of the company or corporation. 

Section 342 of the BNSS lays the procedure when a corporation or registered society is an accused in a criminal case. The company in such a case may appoint a representative for the inquiry or trial. 

Company under Bharatiya Nyaya Sanhita

Section 2(26) of the BNS lays the definition that for the purposes of BNS 2023, “person” includes any company or association or body of persons, whether incorporated or not. Thus, wherever the provision states about commitment of an offence by a person, the possibility of a company being an accused cannot be discarded. However, it may majorly revolve around financial frauds, unless it is a product/medicine manufactured by a company, etc. Even in that case, humans are those acting on behalf of the company. 

Explanation 2 to Section 356 of BNS regarding Defamation lays about imputation concerning a company/association/collection of persons. Thus, if a company can be a complainant, a criminal complaint can be filed against a company as well. Since defamation is not a cognizable offence, there can be no FIR against a company in such cases. 

Inference

While a company may not be acting in itself, it can be prosecuted for a criminal case if the scenario allows it. If a financial fraud or economic offence is committed by those acting on behalf of the company, the criminal case against the company may be initiated, and FIR may also be registered if it is a cognizable offence.