In Brief
Bank of Baroda officials, including its Chairman and Managing Director, were prosecuted for defamation after a possession notice reflected an inflated outstanding amount due to a clerical error. The bank later issued a correcting letter. The Supreme Court quashed the criminal proceedings, holding that directors and officers of a company cannot be prosecuted under the Indian Penal Code solely on the basis of vicarious liability and their designation, without specific allegations of individual involvement. The Court emphasized that the bank itself should have been impleaded as an accused, and that the officials were protected under Section 32 of the SARFAESI Act for actions taken in good faith.
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