GUJARAT HIGH COURT QUASHES CRIMINAL COMPLAINT AGAINST A COMPANY FOR ALLEGED DEFAULT OF CSR OBLIGATIONS

KHS MACHINERY PVT LTD VS ROC

In a notable judgment, the Gujarat High Court quashed a criminal complaint against KHS Machinery Pvt Ltd, which had been filed over CSR deficiencies for FY 2014-15.

The case was referred to the adjudicating authority for determination of an appropriate fine.

This shows a shift in enforcement approach—from criminal charges towards monetary penalties.

The Supreme Court decision in T. Barai v. Henry Ah Hoe and Another (1983) was cited by Gujarat  HC and held that if a penal law is amended to reduce the punishment, the lighter punishment should apply to pending cases unless there is a clear intention to the contrary.

The court ruled that since the 2020 amendment to the Companies Act decriminalized CSR offences, the matter should now be handled via administrative penalties rather than criminal prosecution.

R V SECKAR , FCS , LLB 79047 19295