(1) If the person committing any offence punishable under this Act, is a Company, every person, who at the time of the commission of the offence, was in-charge of, and 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 the 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 gross negligence on the part of any Director, Manager, Secretary or other officer of the Company, such Director, Manager, Secretary or other official shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and published accordingly.
Explanation. - For the purpose 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.
16. All offences under this Act shall be tried in a summary way by a Judicial Magistrate of the First Class and the provisions of Offences by Companies.
Offences to be tried summarily.
Sections 262 to 265 (both inclusive) of the Code of Criminal Procedure, 1973, shall, as far as may be, apply to such trials.