Section 53 of The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
- (1)Where an offence under this Act has been committed by 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, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
- (2)Notwithstanding anything contained in sub-section (1), where any 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 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 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.
Summary
- This section says that if a company breaks the law, both the company itself and the person in charge are responsible.
- A manager or director can avoid punishment if they prove they did not know about the crime or tried their best to stop it.
- If a specific officer like a secretary was lazy or helped commit the crime, they will also be held guilty.
- The word company here includes formal corporations as well as simpler partnerships or groups of people.
- A director in a firm is defined specifically as a partner in that firm.
Practical examples
FAQ
1. Who is held responsible for construction law crimes committed by a company under Section 53?
Under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, both the company and every person in charge of its business at the time are deemed guilty.
2. How can a manager defend themselves against Section 53 of the Building and Other Construction Workers Act?
A manager can avoid liability if they prove the offence happened without their knowledge or that they exercised all due diligence, meaning they tried their best to prevent it, under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
3. Does Section 53 of the Building and Other Construction Workers Act apply to partnerships?
Yes, Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, defines a company as including any body corporate, a firm, or other association of individuals.
Test yourself
Q1.Under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, who besides the company is guilty of an offence?
Q2.What must a director prove to escape punishment under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996?
Q3.In a partnership firm, who is considered a director under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996?
Q4.If an offence is attributable to the neglect of a company secretary, what happens under Section 53 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996?