New Delhi, Nov 20 (KNN) In an assuring note, the Supreme Court ruled that in cases of quality issues of products, the CEOs, promoters or the entrepreneurs cannot be summoned until and unless there is a direct case registered against them.

The ruling comes in the backdrop of the ongoing tradition in which the lower courts used to summon the CEO’s in cases of poor quality products.

The Supreme Court bench that was hearing the case said that in allegations of poor quality products, the courts shouldn’t summon the main promoter or the CEO, instead a representative from the company or the enterprise can appear on the behalf of the company.

The new ruling comes in response to the ruling of a court in Aurangabad that summoned a CEO of a dairy products firm. 

With the new ruling in place, the managing directors and the CEO’s air some relief as they no longer will have to be present during the hearings of the cases against their firm and an appointed representative can make representation for the company or the firm. (KNN/DA)