Companies can be victims in criminal cases, rules SC

Landmark verdict gives corporates right to appeal acquittals even when state does not

- Utkarsh Anand

In a ruling that could fundamentally reshape corporate rights in criminal litigation, the Supreme Court has held that companies can be considered "victims" under the Code of Criminal Procedure (CrPC) and are entitled to appeal against acquittals, even in cases where the state does not pursue one.

A bench of Justices Ahsanuddin Amanullah and Prashant Kumar Mishra allowed an appeal filed by Asian Paints Ltd, setting aside a Rajasthan High Court order that had rejected its right to challenge the acquittal of an individual accused of selling counterfeit paint under its brand name.

"This is a neat question of law of significance, namely, as to whether the appellant would fall under the definition of 'victim' in terms of Section 2(wa) read with the proviso to Section 372 of the CrPC. We are of the considered opinion that the High Court erred in holding otherwise," held the bench on Monday.