What happened?

The Supreme Court ruled that companies can be considered “victims” under Section 2(wa) of the Code of Criminal Procedure (CrPC), giving them the legal right to appeal acquittals in criminal cases even if the state chooses not to initiate proceedings

The spark: Asian Paints vs. Ram Babu

  • In 2016, Asian Paints discovered buckets of counterfeit paint being sold under its brand at a shop in Rajasthan. While the trial court convicted the accused, the Sessions Court later acquitted him.
  • Asian Paints sought to appeal under Section 372 CrPC, but the Rajasthan High Court rejected it, saying only the public prosecutor (i.e., the state) could challenge an acquittal
  • The Supreme Court reversed this decision, acknowledging the company’s financial and reputational harm due to counterfeit goods.

Legal rationale & implications

  • Under CrPC Section 2(wa), a “victim” is anyone who has suffered harm due to the offence. The Court ruled that this definition encompasses juristic persons (i.e., companies).
  • The ruling clarifies that corporate victims may independently appeal acquittals even if the state abstains from filing empowering companies to protect brand integrity and economic interests.
  • Singh Law Chambers, representing Asian Paints, called it a “foundational shift” in corporate rights within criminal law.

What it means for businesses & IP protection

  • Companies can now directly institute criminal appeals for offences harming their trademarks or intellectual property such as counterfeiting or piracy.
  • Criminal litigation will likely see increased involvement from corporate entities, leading to more proactive brand-protection strategies.
  • Legal counsel suggests this will prompt firms to invest significantly in evidence gathering, surveillance, and preparedness for criminal cases.

Looking ahead

  • Expect a rise in filings by companies especially in sectors like pharmaceuticals, FMCG, fashion, and tech against counterfeiters.
  • Prosecutors and courts will need to process appeals even when the state steps back, expanding the judiciary’s role in corporate IP enforcement.
  • This decision marks a notable evolution in the balance between public and private interests in criminal law.

Bottom line: The Supreme Court has empowered companies to act as independent ‘victims’ in criminal proceedings. This landmark ruling significantly expands corporate legal rights, particularly in intellectual property protection, opening avenues for direct criminal appeals to safeguard brand integrity.