(1) Where any offence against any of the provisions of this Act or the rules made thereunder has been committed by 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 its business, 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, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section
(1), where any such offence was 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, they 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 a body corporate and includes a firm, association of persons or body of individuals whether incorporated or not; and
17. Omitted by Act No.37 of 2006.
Offences by Companies.
16 [Act No.13 of 2002]
(b) „Director‟ in relation to a firm, means a partner in the firm and in relation to any association of persons or body of individuals, means any member controlling the affairs thereof.
CHAPTER - IV MISCELLANEOUS
13. No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try an offence punishable under this Act.
14. No suit, prosecution or other legal proceedings shall lie against the Government or any person in respect of anything which is in good faith done or intended to be done under this Act or any rules made thereunder.
15. No court shall take cognizance of any offence punishable under this Act except on a complaint made by the Authority or by an officer or person authorized by it in this behalf.
16. The Authority and every officer or person exercising his functions on its behalf shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860.
17. If any doubt or difficulty arises in giving effect to the provisions of this Act or in the interpretation of any of any its provisions, the Government may by order, make provision or give such direction, not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for the removal of the doubt or difficulty.