Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981
- (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 such punishment provided in this Act 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 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 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.
Summary
- Every person who was in charge of the company's business at the time of the offense is considered guilty alongside the company itself.
- A person in charge can avoid punishment if they prove the crime happened without their knowledge, or that they tried their best to prevent it.
- If it is proven that a director, manager, secretary, or other officer consented to the crime, helped plan it, or caused it through neglect, they are also personally guilty.
- In this context, a company includes a partnership firm, and a director includes a partner in that firm.
Practical examples
FAQ
1. If a company breaks the law, is only the company fined?
No, the people in charge of the business at the time are also deemed guilty and can be punished.
2. How can a manager defend themselves if their company commits a crime?
They must prove that the offense was committed without their knowledge or that they exercised all due diligence to prevent it.
3. Does this law apply to small partnerships, or just big corporations?
It applies to partnerships as well. The law defines a company to include a firm, and a director includes a partner in a firm.
4. What happens if an officer did not actively commit the crime but was simply careless?
If the crime is attributable to any neglect on the part of an officer, they can still be found guilty.
Test yourself
Q1.Under Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981, what happens to the person in charge of a company when the company commits an offense?
Q2.Under Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981, what is a valid defense for a person in charge to avoid punishment for a company's offense?
Q3.Under Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981, how does the law treat a firm or an association of individuals?
Q4.Under Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981, if a company's offense is proven to be caused by the simple neglect of the company secretary, what is the result?
Q5.Under Section 17 of The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981, what title is legally equivalent to a "director" when dealing with a partnership firm?