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Liability for criminal negligence in a corporate
25-Aug-2023 (In Criminal Law)
Respected sir, In case of any criminal negligence ( like fire , lift accident , wall collapse etc ) at a work place like hospital/ restaurant / factory/ schools owned by a private limited company ( or LLP ) with multiple branches. Whom shall government or inspectors prosecute ? Managers or directors ? What should be done so that directors can be saved from criminal prosecution as negligence is always caused by managers . Is there any such agreement possible where its clearly defined that managers would be responsible for such negligence. What are other steps taken ? Please guide.
Dear,
As per the criminal law the person who has committed the offence only will be liable and no other persons are liable. Further, negligence under the civil tortious law the master is liable for the acts of servant. Hence, the Directors of the company are liable for the damages for the negligent act done by their servants. However, if the company has a separate agreement regarding the discharge/role/responsibility/accountability of the concerned manager or servant then accordingly the management can invoke such agreed terms between them and sue them accordingly.....
As per the criminal law the person who has committed the offence only will be liable and no other persons are liable. Further, negligence under the civil tortious law the master is liable for the acts of servant. Hence, the Directors of the company are liable for the damages for the negligent act done by their servants. However, if the company has a separate agreement regarding the discharge/role/responsibility/accountability of the concerned manager or servant then accordingly the management can invoke such agreed terms between them and sue them accordingly.....
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25+
25+
Adv. Vikram Chandra
Hyderabad | 100+ Answers
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Hi
Both manager and directors are responsible.
director cannot run away blaming it on manager.
Vicarious liability as a concept of law has been with us since the development of the traditional
doctrine of tort law relating to the liability of employers. An employer is liable for the torts committed by his employee within the course of his employment. Likewise, a principal is liable for the torts committed by his agent within the scope of the agency.
No such distinction in form of agreement wherein Directors do not take any responsibility is valid in eyes of law.
However Directors should make security and accident prevention measures a part of life and employees should be well trained in all aspects such as security and accident prevention measures. if the employee has not followed the prescribed security and accident prevention steps, then the company or its directors will not be responsible.
Both manager and directors are responsible.
director cannot run away blaming it on manager.
Vicarious liability as a concept of law has been with us since the development of the traditional
doctrine of tort law relating to the liability of employers. An employer is liable for the torts committed by his employee within the course of his employment. Likewise, a principal is liable for the torts committed by his agent within the scope of the agency.
No such distinction in form of agreement wherein Directors do not take any responsibility is valid in eyes of law.
However Directors should make security and accident prevention measures a part of life and employees should be well trained in all aspects such as security and accident prevention measures. if the employee has not followed the prescribed security and accident prevention steps, then the company or its directors will not be responsible.
Helpful?
12+
12+
Adv. Rajagopalan
Hyderabad | 500+ Answers
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