TAMIL NADU ELECTRICITY BOARD vs M/S.RASIPURAM TEXTILE (P) LTD .

The Supreme Court examined the applicability of Section 49A of the Indian Electricity Act, 1910, which holds directors of a company liable for offences committed by the company if they are in charge of its conduct. The Court upheld the lower court's decision to acquit the directors, finding insufficient evidence to establish their involvement in the day-to-day affairs of the company, thus shifting the burden of proof to the prosecution. The appeal was dismissed as the prosecution failed to demonstrate that the directors had knowledge of the offence or were responsible for the company's operations.