Corporate liability for offences: responsible officials can be prosecuted unless they prove lack of knowledge or due diligence. Where a company commits an offence under the Act, the company and every person in charge and responsible for its business at the time are deemed guilty and liable; persons whose consent, connivance or negligence led to the offence - including directors, managers, secretaries or other officers - are also personally liable. The provision applies mutatis mutandis to partnership firms, LLPs, HUFs and trusts, treating partners, karta or managing trustees as liable, while a defence exists where the person proves lack of knowledge or that all due diligence was exercised to prevent the offence.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Corporate liability for offences: responsible officials can be prosecuted unless they prove lack of knowledge or due diligence.
Where a company commits an offence under the Act, the company and every person in charge and responsible for its business at the time are deemed guilty and liable; persons whose consent, connivance or negligence led to the offence - including directors, managers, secretaries or other officers - are also personally liable. The provision applies mutatis mutandis to partnership firms, LLPs, HUFs and trusts, treating partners, karta or managing trustees as liable, while a defence exists where the person proves lack of knowledge or that all due diligence was exercised to prevent the offence.
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