1[44. Contravention by companies.---(1) Where a person committing contravention of any of the provisions of this Act or of any rule made thereunder is a company, every person who, at the time the contravention 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 for the contravention and shall be liable for the first contravention to a penalty may extend to ten thousand rupees, for any second contravention to a penalty which may extend to fifty thousand rupees and for any subsequent contravention with penalty which may extend to five lakh rupees:
Provided that nothing contained in this sub-section shall render any such person liable to any penalty if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule made thereunder has been committed by a company and it is proved that the contravention has taken place 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 shall also be deemed to be guilty of that contravention and shall be liable to penalty which may extend to ten thousand rupees for the first contravention, penalty which may extend to fifty thousand rupees for the second contravention and penalty which may extend to five lakh rupees for any subsequent contravention.
Explanation.---For the purposes of this section,---
(a) "company" means a 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.
Provided that nothing contained in this sub-section shall render any such person liable to any penalty if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule made thereunder has been committed by a company and it is proved that the contravention has taken place 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 shall also be deemed to be guilty of that contravention and shall be liable to penalty which may extend to ten thousand rupees for the first contravention, penalty which may extend to fifty thousand rupees for the second contravention and penalty which may extend to five lakh rupees for any subsequent contravention.
Explanation.---For the purposes of this section,---
(a) "company" means a 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.
Source footnotes
1. Subs by Act 8 of 2026, s. 2 and sch., for s. 44 (w.e.f. 22.06.2026).आगे पढ़ें / Continue reading
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Section 1 · Short title, application and commencement.Section 2 · Definitions.Section 3 · Establishment of National Council.Section 4 · Disqualifications for appointment as member.Section 5 · Functions of National Council.Section 6 · Power to seek advice or assistance.Section 7 · National Council to follow consultative process.Section 8 · State Council of clinical establishments.India Code, Government of India. Text fetched 19 Oct 2026. Source metadata reports last modification: 2025-04-29. Check the linked official text and subsequent notifications when applying a provision.