Offences by companies.

§22C

Summary

1[22C. Offences by companies.--(1) If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.--For the purposes of this section,-- (a) "company" means any body corporate and includes a firm or other association of individuals, and (b) "director" in relation to a firm means a partner in the firm.] STATE AMENDMENT Uttar Pradesh.-- Insertion of new section 22-CC, in Act (11 of 1948).--In the minimum Wages Act, after section 22-C, the following section shall be inserted, namely:-- "22-CC. Compounding of offence.--An Officer specially empowered by the State Government in this behalf by notification may, subject to any general or special order of the State Government in this behalf, compound any offence punishable under this Act with fine only committed for the first time, either before or after the institution of the prosecution, on realization of such amount of composition fee as he thinks fit, not exceeding the maximum amount of fine fixed for the offence; and where the offence is so compounded-- (i) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty; (ii) before the institution of the prosecution, the composition shall amount to acquittal of the offender.'" [Vide Uttar Pradesh Act 35 of 1979, s. 3] STATE AMENDMENT Manipur Insertion of section 22CC.--In the Minimum Wages Act, 1948 (No. 21 of 1948) below section 22C, the following section shall be inserted, namely:-- "22CC.Compounding of offences.--An officer specially empowered by the State Government in this behalf by notification in the official gazette may, subject to any general or special order of the State Government in this behalf, compound any offence punishable under this Act with fine only committed for the first time either before or after the institution of the prosecution, on realization of such amount of composition fee as he thinks fit, not exceeding the maximum amount of fine fixed for the offence, and where the offence is so compounded-- (i) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty; (ii) after the institution of the prosecution, the composition shall amount to acquittal of the offender.". [Vide Manipur Act 7 of 1992, s. 2]

1[22C. Offences by companies.--(1) If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.--For the purposes of this section,-- (a) "company" means any body corporate and includes a firm or other association of individuals, and (b) "director" in relation to a firm means a partner in the firm.] STATE AMENDMENT Uttar Pradesh.-- Insertion of new section 22-CC, in Act (11 of 1948).--In the minimum Wages Act, after section 22-C, the following section shall be inserted, namely:-- "22-CC. Compounding of offence.--An Officer specially empowered by the State Government in this behalf by notification may, subject to any general or special order of the State Government in this behalf, compound any offence punishable under this Act with fine only committed for the first time, either before or after the institution of the prosecution, on realization of such amount of composition fee as he thinks fit, not exceeding the maximum amount of fine fixed for the offence; and where the offence is so compounded-- (i) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty; (ii) before the institution of the prosecution, the composition shall amount to acquittal of the offender.'" [Vide Uttar Pradesh Act 35 of 1979, s. 3] STATE AMENDMENT Manipur Insertion of section 22CC.--In the Minimum Wages Act, 1948 (No. 21 of 1948) below section 22C, the following section shall be inserted, namely:-- "22CC.Compounding of offences.--An officer specially empowered by the State Government in this behalf by notification in the official gazette may, subject to any general or special order of the State Government in this behalf, compound any offence punishable under this Act with fine only committed for the first time either before or after the institution of the prosecution, on realization of such amount of composition fee as he thinks fit, not exceeding the maximum amount of fine fixed for the offence, and where the offence is so compounded-- (i) before the institution of the prosecution, the offender shall not be liable to prosecution for such offence and shall, if in custody, be set at liberty; (ii) after the institution of the prosecution, the composition shall amount to acquittal of the offender.". [Vide Manipur Act 7 of 1992, s. 2]

Footnotes

1. Subs. by s. 14, ibid., for section 22.

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