(1) If the person committing an offence under this Act is a company, every person, who, at the time 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 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 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 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 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 or other association of individuals ; and
(b) ‘‘director’’ in relation to a firm means a partner in the firm.
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Section 1 · Short title, extent and com-mencement.Section 2 · DefinitionsSection 3 · Matters that may be dealt within a scheme.Section 4 · Reconstituted plots.Section 5 · Power of Government to require the Board to make scheme.Section 6 · Contents of draft scheme.Section 7 · Procedure to be followed in the preparation and approval of scheme.Section 8 · Sanctioning of scheme by the GovernmentIndia Code, Government of India. Text fetched 16 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.