Section 342 BNSS: Procedure when corporation or registered society is an accused (Formerly Section 305 CrPC)

Section 342 of Bharatiya Nagarik Suraksha Sanhita, 2023: Procedure when corporation or registered society is an accused

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) In this section, "corporation" means an incorporated company or other body corporate, and includes a society registered under the Societies Registration Act, 1860.

(2) Where a corporation is the accused person or one of the accused persons in an inquiry or trial, it may appoint a representative for the purpose of the inquiry or trial and such appointment need not be under the seal of the corporation.

(3) Where a representative of a corporation appears, any requirement of this Sanhita that anything shall be done in the presence of the accused or shall be read or stated or explained to the accused, shall be construed as a requirement that that thing shall be done in the presence of the representative or read or stated or explained to the representative, and any requirement that the accused shall be examined shall be construed as a requirement that the representative shall be examined.

(4) Where a representative of a corporation does not appear, any such requirement as is referred to in sub-section (3) shall not apply.

(5) Where a statement in writing purporting to be signed by the managing director of the corporation or by any person duly authorised by him (by whatever name called) having, or being one of the persons having the management of the affairs of the corporation to the effect that the person named in the statement has been appointed as the representative of the corporation for the purposes of this section, is filed, the Court shall, unless the contrary is proved, presume that such person has been so appointed.

(6) If a question arises as to whether any person, appearing as the representative of a corporation in an inquiry or trial before a Court is or is not such representative, the question shall be determined by the Court.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Inquiry Sec 2(1)(g) Investigation Sec 2(1)(h) Victim Sec 2(1)(w)

Legal Commentary & Landmark Judgments: Section 342

Section 342 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (corresponding to Section 305 of the CrPC, 1973) regulates the procedure when a corporation, company, or registered society is an accused in criminal proceedings.

Representation by Authorized Representative: A corporation may appoint a representative for the purpose of the inquiry or trial by a written statement signed by the managing director or authorized officer.
Dispensation of Physical Presence: Where a representative appears, any requirement of this Sanhita regarding presence or examination of the accused shall be construed as requiring presence or examination of such representative.
Non-appearance Consequence: If no representative appears, the Court may proceed ex parte with the inquiry or trial in accordance with statutory provisions.

Key Landmark Precedents:

Standard Chartered Bank v. Directorate of Enforcement, (2005) 4 SCC 530: The Constitution Bench settled that corporations can be prosecuted for offences involving criminal intent (mens rea); where imprisonment and fine are prescribed, the court can impose the fine on the juristic entity.
Aneeta Hada v. Godfather Travels & Tours (P) Ltd., (2012) 5 SCC 661: Affirmed that arraigning the corporate body as a principal accused is mandatory before directors or officers can be held vicariously liable.

Courtroom Practice & Strategic Litigation Guidance:

When representing companies in economic offences or Section 138 NI Act, ensure that a formal board resolution and authorization letter under Section 342 is filed at the first hearing to designate the official representative.