Allahabad High Court quashes criminal case against Wipro chairperson Azim Premji in labour law complaint

The Allahabad High Court recently quashed criminal proceedings against Wipro founder Azim Premji in a complaint case concerning alleged labour law violations at Wipro’s Lucknow office [Azim Premji Vs State of UP].Justice Zafeer Ahmad held that Premji could not be prosecuted merely because he was the chairperson and Managing Director of Wipro, when the complaint did not contain any specific allegation showing his direct involvement in the alleged violation.“It is well settled that criminal liability cannot be fastened in a mechanical manner merely on the basis of designation unless the statute specifically provides for vicarious liability or there exist specific allegations demonstrating active role and responsibility of the accused in commission of the alleged offence,” the Court said..The Court was hearing an application filed by Premji under Section 482 of the Code of Criminal Procedure (CrPC) seeking quashing of proceedings pending before the Chief Judicial Magistrate at Lucknow. He also challenged the summoning order dated February 8, 2017.Premji’s counsel argued that he had no role in the day-to-day functioning of Wipro’s Lucknow office. It was submitted that the security services at the establishment had been outsourced to G4S Secure Solutions India Private Limited under an agreement dated March 18, 2015.Under this agreement, G4S was an independent contractor and was solely responsible for payment of wages, statutory dues, provident fund, ESI and compliance with labour laws for its employees, the Court was told.Premji further argued that he did not exercise administrative or managerial control over G4S or supervise its employees. He was residing in Bengaluru and was not involved in the daily operations of the Lucknow office.It was also submitted that no notice regarding the alleged violation was served on him or any Wipro establishment, and that he came to know about the proceedings only after bailable warrants were issued.The State opposed the plea and argued that the complaint disclosed commission of an offence and that the summoning order had been rightly passed..The High Court found that the complaint sought to prosecute Premji only on account of his designation. It noted that there was no material showing his active role in the day-to-day functioning of the Lucknow establishment.The Court also took note of the outsourcing arrangement with G4S and observed that the security agency was independently responsible for compliance with labour law and statutory obligations concerning its employees.The Court further found that the summoning order passed by the Chief Judicial Magistrate was “wholly cryptic and non-speaking” and had been passed in a proforma manner.The order did not discuss the material on record, the ingredients of the alleged offence, or the role attributed to Premji, the High Court said. It added that even the relevant statutory provisions under which cognizance was taken had not been properly discussed..“Summoning of an accused in a criminal case is a serious matter and the Magistrate is required to apply judicial mind to the facts of the case and material available on record before issuing process,” the Court observed..The Court also noted that a coordinate Bench had quashed similar proceedings on identical facts in another application in May 2024.Holding that continuation of proceedings against Premji would amount to abuse of process of court, the High Court allowed his plea and quashed the summoning order and all consequential proceedings against him..Advocates Karunanidhi Yadav and Prateek Pal Singh appeared for Premji..Additional Government Advocate Sanjay Kumar Yadav appeared for the State..[Read Judgment]