Section 342: Procedure when Corporation or registered society is an accused
Section 342 of the Bhartiya Nagarik Suraksha Sanhita, 2023 describes the procedure when a corporation or registered society is an accused in legal procedures. This ensures that corporate bodies, being juristic persons, are able to adequately participate in inquiry and trial processes without physical presence in courts.
The word "corporation" within this section shall include any incorporated company or body corporate, or any society duly registered under the Societies Registration Act, 1860. This wide definition ensures that both for-profit corporations and non-profit societies fall under the procedural provisions of this section.
A corporation or registered society charged in an investigation, trial, or other proceeding may nominate a representative to carry out all the business regarding the case. Significantly, this nomination need not be formalized by the corporation's seal or any similar procedure of the
corporation
The corporate appointee shall have the obligation of performing all such legal tasks commonly associated with the appearance of the corporation in court. Such includes reading of charges, the production of evidence, examination and all other such procedural tasks normally requiring the personal appearance of the accused. In this way, a corporation may also be heard to its advantage by authorized agents, without having the corporation's directors or officers to appear in person.
If the company or corporation or registered society fails to appoint a representative or if the representative fails to turn up in court, then procedural requirements about appearance of the accused can be relaxed. That is, some formality that is otherwise required to be followed from the side of the accused party will not be applicable and the absence of the corporation need not delay the proceeding of the trial.
The company must present a written declaration to the court proving that a representative has been appointed. The declaration is signed by the managing director or any other authorized person of the company. The court presumes the correctness of this declaration unless proof of the contrary exists.
This will ensure that the court has an official record of the appointment of the representative and can confirm whether the representative is authorized to represent the corporation or not.
In case there is a controversy concerning the valid appointment of the representative, the court may resolve the issue. It is within the purview of the court to decide if the person appearing on behalf of the corporation has an authority to represent the same in any legal proceeding.
Example:
Company XYZ Ltd., charged with a lawsuit of breaking some environmental regulations due to manufacturing activity, it might appoint its CLO to stand in as their official representative when the trial would take place. The CLO would read through all charges of XYZ Ltd. and produce whatever evidence it possesses and question several witnesses as they may arise before the court, thus keeping within the law interests of the corporations without the obligation of being attended by their members of directors and executives
