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Synopsis

The Lucknow bench of the Allahabad High Court on Wednesday allowed the plea filed by Azim Premji, chairman and managing director of Wipro Limited challenging a summon and a bailable warrant issued against him.

Court quashed criminal proceedings against Premji regarding alleged labor law violations. It opined that the chief judicial magistrate of Lucknow had failed to properly examine the nature of the allegations in the complaint.

The bench of Justice Shamim Ahmad delivered the verdict which was reserved on May 13.

The chief judicial magistrate had initiated a criminal case against Azim Premji and others based on a complaint from a labor enforcement officer, subsequently issuing a summons and a warrant against him. The matter pertains to inspection of G4S Secure Solutions India Private Limited which is an agency that provides security services. G4S was engaged in providing security to the Wipro office in Lucknow. During an inspection of G4S by a Labour Enforcement officer, alleged violations of law were discovered and notices were allegedly issued to the Wipro Company and G4S.

Premji's advocate, Karunanidhi Yadav, argued that there was no prima facie case against Premji.

In the plea moved under Section 482 CrPC, Premji's counsel submitted that he has no interest in any shareholdings or managerial control over the M/s G4S Secure Solutions (India) Private Limited and he, being in the Board of Directors of Wipro has nothing to do with the day-to-day operations of the Wipro office at Lucknow.

He stressed that Premji has no administrative control over G4S.

While adjudicating upon the issue, the bench pointed out Premji's image as a businessman. It said, "The applicant, a distinguished industrialist and the Chairman and Managing Director of Wipro Ltd., has consistently demonstrated a commitment to ethical business practices and social responsibility. Under his leadership, Wipro has not only thrived as a global leader in the IT industry but has also been at the forefront of numerous philanthropic initiatives aimed at improving education, healthcare, and environmental sustainability in India and beyond".

Court also highlighted Premji's commitment to philanthropy. "His philanthropic initiatives have spanned diverse fields such as education, healthcare, and environmental sustainability, reflecting a holistic approach to social responsibility".

Court emphasised that an Officer, Director, Managing Director or Chairman of the Company can be made an accused along with the Company only if there is sufficient material to prove his active role coupled with criminal intent.

Court held that it was proved that Premji has no direct involvement in the day-to-day operations of Wipro's office in Lucknow or any managerial control over G4S and the contractual agreement between Wipro and M/s G4S Secure Solutions explicitly outlined that the security personnel were independent contractors, not employees or agents of Wipro.

Case Title: Azim Premji v. State of UP and Another