Section 9 of The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954
- (1)If the person contravening any of the provisions of 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 contravention 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 the commission of such offence.
- (2)Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company and it is proved that the offence was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company, 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 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
- If a company violates this Act, both the company itself and every person in charge of its business at that time are considered guilty.
- A person in charge can avoid punishment if they prove the crime happened without their knowledge.
- A person in charge can also avoid punishment if they prove they used all due diligence (proper care and effort) to prevent the crime.
- If a company officer, such as a director, manager, or secretary, helped or allowed the crime through neglect, they will also be held guilty.
- The term "company" includes bodies corporate, firms, and other associations of individuals.
- For a firm, the word "director" refers to a partner in that firm.
Practical examples
FAQ
1. Who is held responsible when a company violates this Act?
Both the company itself and every person who was in charge of and responsible for its business at the time of the offence are deemed guilty.
2. How can a manager of a company prove they are innocent?
They must prove that the offence was committed without their knowledge, or that they did everything they could (exercised due diligence) to prevent it.
3. Can a regular company secretary or manager be punished?
Yes, if it is proved that the offence happened with their consent, connivance (secretly allowing it), or is due to their neglect, they will also be deemed guilty.
4. What does the term "company" mean under this section?
It means any body corporate and includes a firm or any other association of individuals.
5. Who is considered a "director" when the business is a partnership firm?
In the case of a partnership firm, a "director" refers to a partner in that firm.
Test yourself
Q1.If a company breaks this law, who is automatically deemed guilty along with the company?
Q2.What are the two defenses a person in charge can use to avoid punishment?
Q3.If a director's neglect led to the company's offence, can they be punished?
Q4.What does the word "company" include under Section 9?
Q5.In relation to a partnership firm, who does the term "director" refer to?