Section 34 — Offences by companies.

34. Offences by companies.—(1) If the person committing an offence under this Act is a company, 

the company as well as every person in charge of, and responsible to, the company for the conduct of its 

business at the time of the commission of the offence 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 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 that the commission of the offence is attributable to any neglect on the part of any 

director, manager, managing agent or any other officer of the company, such director, manager, managing 

agent or such 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,— 



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(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 

Jammu and Kashmir and Ladakh (UTs).— 

After section 34, insert: — 

“34A. Compounding of offences.—(1) Any offence punishable under sub-section (1) of section 

29, section 31 and section 32 may, either before or after the institution of the prosecution, on an 

application by the alleged offender, be compounded by payment of compounding amount not more 

than five thousand rupees, by such officer or authority as the appropriate Government may, by 

notification in the official Gazette, specify in this behalf: 

Provided that the appropriate Government may, by notification in the official Gazette, amend the 

said specified compounding amount: 

Provided further that the offences of the same nature committed by the same offender for more 

than three occasions shall not be compoundable: 

Provided also that such offences shall be compounded only after the alleged offender has acted to 

the satisfaction of such officer or authority that such offence is not continued any further: 

Provided also that when an offence is compounded on an application by the employer, then 

seventy-five per cent of the compounding amount received from him, shall be paid wherever it is 

feasible to the concerned worker or equally amongst the workers and if any workmen are not 

identifiable then the remaining amount shall be deposited in such manner as may be notified by the 

appropriate Government. 

(2) Where an offence has been compounded under sub-section (1), no further proceedings shall 

be taken against the offender in respect of such offence and the offender, if in custody, shall be 

released or discharged.”. 

[Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, 

notification No. S.O. 3465(E), dated (5-10-2020) and Vide Union Territory of Ladakh Reorganisation 

(Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] 

Uttar Pradesh 

Insertion of section 34-A.—After section 34 of the principal Act the following section shall be inserted 

namely :— 

“34-A Any offence punishable under this Act with fine only or imprisonment up to three months 

or with both shall be compounded on the application of accused before or after institution of 

prosecution by a competent authority notified by the State Government, after imposing 50% of the 

fine for the offence as compounding fee along with the prescribed fine: 

Provided that remedy for compounding shall be available for the first offence only. 

(2) Every officer referred to in sub-section (1) shall exercise the power to compound an offence, 

subject to direction, control and supervision of the State Government. 

(3) Every application for the compounding of an offence shall be made in such form and in such 

manner as may be prescribed. 

(4) Where any offence is compounded before the institution of any prosecution, no prosecution 

shall be instituted in relation to such offence, against the offender in relation to whom the offence is 

so compounded. 

(5) Where the composition of any offence is made after the institution of any prosecution, such 

composition shall be brought by the officer referred to in sub-section (1) in writing to the notice of the 

court in which prosecution is pending and on such notice of the composition of the offence being 

given, the person against whom the offence is so compounded shall be discharged. 

[Vide Uttar Pradesh Act 12 of 2018, s. 3] 



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