Professional Documents
Culture Documents
Judicial Attitude:
The courts generally have been giving differential treatment towhite-collar criminals. Sometimes, instead
of punishing the guilty, thecourts have used cease-and-desist orders in case of white-collar criminals,a
technique which is not resorted to for ordinary criminals. As pertinentlyobserved by Taft and England, we
do not warn the burglar to desist; wearrest him forthwith. There, however, seems to have occurred
stiffeningof the judicial attitude in the U.S.A. of late as manifested in the famousGeneral Electric case of
the electrical equipment companies decided inthe year 1961. In the words of Taft and England:The plea
of
nolo
contendere
(no
contest)
by
person
formallyaccused of a crime is a backhanded plea of guilty. For decades, businessman accused of violating
when
the
evidence
against
them
was
clearly
overwhelming. Never, until 1959, did imprisonment follow such a plea. In that year, totheir astonishment
four Ohio
businessman
were sentenced
to jail
for
anti-
7 billion
worth
of heavy
electrical equipment.
In
vice-president
addition
were
variously sentenced to 30- and 60 days jail terms most of these sentences were actually served. The
extensive press coverage given to this incident was apparently based not upon theenormity of the
crimes involved, but upon nation wide surprise at the jailsentences meted out and upon the verbal
reprimands
by
the
sentencing judge.Taft and England also not the significance of the Time Magazinereporting the story in
the Business and not in the Crime columns.35The trial courts in India sometimes fail to realize the
gravity of white-collar criminality and, therefore tend to be contented by awarding light or even token
punishment
to
white-collar
criminals.
The
Law
Commissionhas been fully aware of the judicial smugness vis--vis white-collar crimes and the dangers
inherent in it. In its Forty-seventh Report theCommission observed.
Besides prescribing stiffer punishments for white-collar offerders, theSupreme Court has also held in a nu
mber of cases that liberalinterpretation must be given to the penal laws dealing with social
welfarelegislation to see that the legislative object is not defeated. In
Murlidhar Meghraj Laya V. State of Maharastra,
the Court observed:It is trite that the social mission of food laws should inform theinterpretative process
so that the legal blow may fall on every adulterator.Any narrow and pedantic literal and lexical
construction likely to leaveloopholes for this dangerous criminal tribe to sneak out of the meshes of the
law should be discouraged. For the new criminal jurisprudence mustdepart from the old canons, which
make indulgent presumptions andfavoured constructions benefiting accused persons and defeating
criminalstatutes calculated to protect public health and the nations wealth.In the case of,
State of Maharastra V. Mohd. Yaqub, the Court was of theview that penal provisions calculated to
suppress smuggling activitiesmust be construed liberally.It may be noted that these rulings in favor of the
liberal interpretation of penal provisions relating to socio-economic crimes are at variance withthe
ordinary rules of construction of penal status which require strictinterpretation and benefit of doubt, if
any, must be given to the accused.Finally, the Courts in India have given strict interpretation to the socioeconomic statues which do not require any mens rea either in the form of intention or knowledge for
committing an offence. This is how it should be though it may be pointed out that the courts have been
somewhatreluctant in finding mens rea excluded from statutes dealing with moretraditional offences.
Dealing with a violation of the Foreign Exchange Regulation Act, 1947 the majority in State of
Maharastra V. George heldthat the very object and purpose of the Act and its effectiveness as
aninstrument for the prevention of smuggling would be entirely frustrated if conditions were to be read
into section of the Act qualifying the plainwords of the enactment that accused should be proved to have
knowledgethat he was contravening the law before he could be held to havecontravened the provision.
Again in Tejani V. Dange a case under the Prevention of FoodAdulteration Act, the Supreme Court
said:It is trite law that in food offences strict liability is the rule not merelyunder the Indian Act but the
entire world over. Section 7 casts an absoluteobligation regardless of sinter bad faith and mens rea. If you
have soldany article of food contrary to any sub-sections of section 7 you areguilty. There in no more
argument about it.In most circumstances, the defense is faced with two competing anddifficult
alternatives: accept the prosecutions offer and plead guilty tocertain charges, or proceed to trial and allow
the court to decide theoutcome. Neither choice is easily made; each can have life-alteringconsequences.