Supreme Court Affirms Corporate Victimhood in Criminal Appeals Case: Asian Paints Wins Landmark Ruling

Supreme Court Affirms Corporate Victimhood in Criminal Appeals Case: Asian Paints Wins Landmark Ruling

New Delhi, July 16, 2025 – In a landmark decision delivered on July 14, the Supreme Court of India held that companies can qualify as “victims” under the Code of Criminal Procedure and thereby have the right to challenge acquittals in criminal proceedings. In a case brought by Asian Paints, the bench of Justices Ahsanuddin Amanullah and Prashant Kumar Mishra granted the company standing to appeal a Rajasthan High Court order that had dismissed its appeal following the acquittal of a trader in an alleged counterfeiting case.

The dispute originated from a 2016 raid in Tunga, Rajasthan, where 12 buckets of paint bearing marks similar to Asian Paints’ trademark were seized from a vendor. The accused was initially convicted in 2019 under IPC Sections 420 (cheating) and 120B (criminal conspiracy), along with charges under the Copyright Act. However, the conviction was overturned on appeal in 2022, and the Rajasthan High Court subsequently ruled that Asian Paints could not pursue the appeal because the company was not the original complainant.

The Supreme Court overturned the High Court’s reasoning. It underscored that Section 2(wa) CrPC—which defines “victim”—should be interpreted expansively to include juristic entities that suffer financial loss or reputational harm. The company’s reputational and economic injuries resulting from counterfeits sold under its brand, the Court held, clearly placed it within the ambit of a “victim.”

Central to the judgment was the Court’s interpretation of the 2009 proviso to Section 372 CrPC, which grants victims a statutory right to appeal against acquittals, lighter convictions, or inadequate compensation. The Supreme Court clarified that this right is self-contained and does not require filing under Section 378 CrPC, which governs state‑initiated appeals and requires leave of court. It emphasized that restricting corporate entities from such appeals would undermine the legislative intent of victim-centric justice.

Legal commentators observe that this ruling significantly strengthens corporate recourse in criminal law, especially in cases involving intellectual property rights (IPR) violations. Companies can now treat criminal proceedings as a parallel enforcement mechanism alongside civil remedies when dealing with counterfeiting or trademark infringement.

By setting aside the Rajasthan High Court’s order, the Supreme Court granted Asian Paints full legal standing to proceed with its appeal. The case has been remanded for a fresh hearing on merits, allowing the company to challenge the lower court’s acquittal or seek enhanced sanctions.

In sum, this judgment is a pivotal shift in criminal jurisprudence. It affirms that corporate entities can be formally recognized as victims, entitling them to independent appellate rights under Section 372 CrPC. This empowers businesses to defend their brand integrity and pursue justice in criminal courts—not merely through civil litigation but through criminal appeals as aggravated victims.