SHARAT BABU DIGUMARTI vs GOVT OF NCT OF DELHI

The Supreme Court addressed the interpretation of Section 85 of the Information Technology Act, 2000, in conjunction with Section 141 of the Negotiable Instruments Act, 1881. The Court held that for a director of a company to be prosecuted under Section 292 IPC and Section 67 of the IT Act, the company must also be impleaded as an accused, establishing that the commission of an offence by the company is a prerequisite for vicarious liability. Consequently, the prosecution against the directors without the company being named was deemed improper, leading to the quashing of the proceedings against them.