Section Text
1 [22C.Offences by companies.--
(1)If the person committing any offence under this Act is a company, every personwho at the time the offence was committed, was in charge of, and was responsibleto, the company for the conduct of the business of the company as well as thecompany shall be deemed to be guilty of the offence and shall be liable to beproceeded against and punished accordingly;
Providedthat nothing contained in this sub-section shall render any such personliable to any punishment provided in this Act if he proves that the offence wascommitted without his knowledge or that he exercised all due diligence toprevent the commission of such offence.
(2)Notwithstanding anything contained in sub-section (1), where an offenceunder this Act have been committed by a company and it is proved that theoffence has been committed with the consent or connivance of or is attributableto any neglect on the part of, any director, manager, secretary or other officerof the company, such director, manager, secretary or other officer of thecompany shall also be deemed to be guilty of that offence and shall be liable tobe proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) ''Company'' means any body corporate and includes a firm or other association ofindividuals; and
(b) ''director'' in relation to a firm means a partner in the firm.]
STATEAMENDMENTS
Madhya Pradesh--Aftersection 22Cadd the following:--
"22CC. Liabilityof principals in certain cases--
(1)Subject to the provisions of subsection(2), where in any scheduled employmentin respect of which minimum rate of wages have been fixed under this Act, anyperson (hereinafter in this sectionreferred to as principal) contractswith any other person (hereinafter inthis section referred to ascontractor) for having any goods madefor sale for the purposes of the trade or the principal either wholly or partly out of materials supplied to the contractor by the principal,then notwithstanding that theemployees for making such goods are employed by the contractor, the principal shallalso in addition to the contractor be for all purposes of this Act to be theemployer in relation to the employees:
Provided that where by virtue of theprovision of sub-section (1), a principal isconvicted of an offence punishable under section 22,he shall be punishable only with fine as provided forin that section.
(2) Theprovisions of this section shall apply only to such scheduled employments as theState Government may, by notification, specify in this behalf," [Vide M.P.Act 11 of 1959, sec. 2 (w.e.f.12-6-1959) as amended by M.P. Act 23 of 1961, sec. 21(b) (w.e.f. 23-6-1961)]
Uttar Pradesh--Inits application to the State of Uttar Pradesh, after section 22Cinsert section 22CC,as under:--
"22CC. Compoundingof offences.--An officer specially empowered by the State Governmentin this behalfby notification may, subject to any general or special order of theState Government in this behalf, compound any offence punishable under this Actwith fine only committed for thefirst time, either before or after theinstitution of the prosecution, onrealisation of such amount of composition fee as he thinks fit, not exceedingthe maximum amount of fine fixed forthe offence; and where the offence is so compounded--
(i) before theinstitution of the prosecution, theoffender shall not be liable to prosecutionfor such offence and shall, if in custody, be set at liberty;
(ii) after the institution of theprosecution, the composition shall amount to acquittal of theoffender." [Vide U.P. Act 35 of 1979,see. 5 (w.e.f.21-12-1979)]
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1. Inserted by Act 30 of 1957, section 14 w.e.f.17-9-1957.