Section 21
(1) If the person committing an offence under this Act is a company, every person, who, at the time the 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 :
21. (1) If the person committing an offence under this Act is a company, every person, who, at the time the 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 commission of such offence ;
(2) Notwithstanding anything contained in Sub-section (1), where an offence under this Act has been committed by a company
Cognizance of offences
Composition of Offences
Members and officers to be public servants
Sanction of prosecution
Authentication of orders and documents
Suit and other proceedings
Term of members and chairperson
Dissolution of Board
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.
(1) No court shall take cognizance of any offences under this Act except on a complaint in writing made under the signature of an officer duly authorized by the Board in this behalf.
offences punishable under this Act shall be tried by a court not inferior to the Magistrate of first class.
(1) Any offence made punishable by or under this Act may either before or after the institution of proceedings, be compounded-by the Chief Executive officer or any officer authorized by him in that behalf by General or Special order on such terms, including any term as regards payment of a composition fee, as the Chief Executive officer or such officer may think fit.
Where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence compounded.
The Chairperson, every member and every officer of the Board shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (Act no. 45 of 1860).
No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Chairperson.