Q: Elaborate the citation of Standard Chartered Bank And Others vs Directorate Of Enforcement And Others on 24 February, 2006 ?

Supreme Court of India

Standard Chartered Bank and others vs Directorate Of Enforcement and others on 24 February, 2006.

Bench: Cji Y.K. Sabharwal, C.K. Thakker, P.K. Balasubramanyan.

In paragraph 29 of the judgment, it was argued before Hon'ble the Supreme Court that when an offence punishable with imprisonment and fine is alleged against the company, the court is not left with any discretion to enforce any one of them and consequently the company being a juristic person cannot be prosecuted for the offence for which custodial sentence is a mandatory punishment, was negated by Hon'ble the Supreme Court and it held that if custodial sentence is the only punishment prescribed for the offence then a company cannot be prosecuted. But, where custodial sentence and fine are prescribed modes of punishment, the court can impose the sentence of fine on a company which is found guilty, as the sentence of imprisonment is impossible to be carried out. Hon'ble the Supreme Court placed its reliance upon the rule of law enunciated in the legal maxim lex non cogit ad impossiblia or that the law shall not expect the performance of the impossible. Therefore, the contention of the learned counsel for the respondent fails.