A Company failed to pay fine levied for certain non-compliances. The prescribed authority issued non-bailable warrant of arrest as well as a distress warrant against the Managing Director for non-payment of the fine. The

As per Section 421 of the Criminal Procedure Code, 1973 , where an offender has been sentenced to pay a fine, the Court has the authority to issue a warrant for the levy of the amount by attachment and sale of any movable property belonging to the offender. Further, it can issue a warrant to the Collector of the District authorizing him to realize the amount as arrears of land revenue from movable or immovable property or both of the defaulter. The Orissa High Court in Hrushikesh Panda v. State of Orissa and Ors. [1997] 89 Comp Cas 613 (Ori) , setting aside a non-bailable warrant of arrest as well as a distress warrant issued against the petitioner (who was the Managing Director), held the following: The fine had been imposed on the company, and it is the liability of the company to pay the same. The liability of the company is distinct from the liability of its managing director. Once it is concluded that the company has its own liability, the realization of the fine has to be made from the company, as per the mode provided under Section 421 of CrPC. Legal dues of a company could be realized only by attaching the assets of the company and not by putting the managing director or any of the directors in prison. The company is the offender or the defaulter. Therefore, the issuance of a non-bailable warrant or distress warrant against the managing director or director to realize the company's dues is not permissible. In view of the above, the contention of the Managing Director is correct. The issuance of a non-bailable warrant or distress warrant against the Managing Director in the given situation, for a fine levied on the company, is not appropriate and not permissible.