The Supreme Court has held that a company can be called a 'victim' under the Code of Criminal Procedure and it can file an appeal against an acquittal order in criminal cases, including violations of intellectual property rights.
This means that corporate entities affected by violations of such rights could pursue criminal proceedings as the victim. A Bench of Justice Ahsanuddin Amanullah and Justice Prashant Kumar Mishra was hearing a plea by Asian Paints, which had suffered losses due to the accused allegedly selling counterfeit paints.
Asian Paints moved the apex court against the Rajasthan high court judgment dismissing its appeal against the acquittal of Ram Babu, who was allegedly found selling counterfeit paints under the brand name 'Asian Paints'.
The high court had dismissed the appeal under the proviso to Section 372 CrPC, reasoning that an agent of Asian Paints and not the company was the 'complainant' and therefore the latter couldn't file an appeal against the acquittal.
The Supreme Court, while disagreeing with this reasoning, questioned 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, or whether Section 378 of the CrPC would prevail in the facts and circumstances of the present case. The proviso to Section 372 grants victims the right to appeal against acquittal of the accused, conviction for a lesser offence, and inadequate compensation. If the court orders insufficient compensation for the victim, the victim can appeal.
-- Bhavini Mishra, Business Standard
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