Bombay HC: Whether offence under S 120B of IPC (Criminal Conspiracy) is attracted against Corporate body if its directors Conspire to Defraud Investors?

  The next contention raised on behalf of the applicant is that the offence under Section 120-B of the IPC (criminal conspiracy) cannot apply, since the company Finnmart is not a living or biological person. This argument, however, does not hold good in its absolute sense. The material placed before the Court does not suggest that the alleged conspiracy was only between the complainant and the company Finnmart. On the contrary, the case of the prosecution is that the applicant, along with other co-accused persons, in connivance, hatched a conspiracy to cheat innocent investors by inducing them to part with their hard-earned money on the false promise of extraordinary returns. The law under Section 120-B IPC clearly recognises that conspiracy is essentially an agreement between two or more persons to do an unlawful act. When natural persons are involved in designing and executing such a fraudulent scheme, the non-biological character of a company does not in any way take away the offence of conspiracy. The individuals who control, plan and execute the scheme can always be held liable for entering into a conspiracy. {Para 35}

IN THE HIGH COURT OF BOMBAY

Bail Application No. 1175 of 2025

Decided On: 04.09.2025

Milind Satish Sawant Vs. The State of Maharashtra

Hon'ble Judges/Coram:

Amit B. Borkar, J.

Citation:  MANU/MH/5408/2025,2025:BHC-AS:37033.

Read full judgment here: Click here.

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