TaxTMI 
TaxTMI 
1989 (8) TMI 337
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....visions of the Haryana Rice Procurement (Levy) Order, 1979, read with section 7 of the Essential Commodities Act. They were sentenced to six months' rigorous imprisonment and a fine of Rs.2,000 each. The High Court of Punjab and Haryana has confirmed that conviction and sentence. They now appeal against conviction. The facts which gave rise to the charge, in so far as material, were these: In 1984, the firm purchased 5373 quintals 69 kgs. and 400 gms of common paddy from the market. By the rate of conversion of paddy into rice an average 3582.49 quintals of rice should have been obtained from that much of quantity of paddy. As per levy rules the firm ought to have supplied 3224.21 quintals of rice to the Government but the firm failed to ....
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....ceeded against and punished accordingly: Provided that nothing contained in this sub-section render any such person liable to any punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained .in sub-section 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 ....
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.... as a principal. He is an agent in so far as he can bind the other partners by his acts within the scope of the partnership agreement. He is a principal to the extent that he is bound by acts of other partners. In fact every partner is liable for an act of the firm. Section 2(a) of the Partnership Act defines an "act of a firm" to mean any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm. But we are concerned with a criminal liability under penal provision and not a civil liability. The penal provision must be strictly construed in the first place. Secondly, there is no vicarious liability in criminal law unless the statute takes that also within its ....