The managing director of a company is not held liable only because on the ground of Managing Director

Barathkumar K M | Sastra Deemed to be University Thanjavur | 11th June 2020

Shiv kumar jatia vs State of NCT of Delhi

Facts:

The appellant was a Managing Director in a hotel named Hyatt Regency. Gaurav Rishi went to that hotel to meet his two friends. He had fallen from the terrace of the Hyatt Regency’s sixth floor lobby and was seriously injured on October 16, 2013. It had said he had stepped out to the terrace for a smoke. A case was filed against the Managing Director of the Hyatt Regency for criminal negligence under Sec. 304A of IPC. It is the case of the prosecution that the terrace was dark and there was no light on the terrace and hotel staff did not stop them from going there. Precisely it is the allegation that there was a lapse on the part of the hotel management in taking safety measures for the guests and they have allowed the guests to terrace areas which were not safe. The High Court of Delhi held that the Managing Director of the Hyatt Regency was held liable for criminal negligence. The present appeal has been filed by the appellant for challenging the Delhi High Court order.

Issues:

1. Whether the Managing Director of the Hyatt Regency was held liable only because of the ground of the Managing Director?

Observation:

Medical reports had said he was not inebriated at the time of fall. It clears that Gaurav Rishi had fallen from the terrace only because of his negligence and there was no negligence from the Managing Director. Even though there was no light on the terrace, the Managing Director was not held liable only because on the ground of Managing Director. Everybody knows smoking during night time at the terrace is not safe so Gaurav Rishi was injured because of his negligent act.      

Judgment:

The Hon’ble Supreme Court quashed the Delhi High Court’s order and held that the Managing Director was not held liable because Gaurav Rishi had fallen from the terrace only due to his negligence and the Managing Director of a hotel cannot be accused in a criminal case against the hotel, merely on grounds of him being the Managing Director.