Section 44 of The Warehousing (Development and Regulation) Act, 2007
- (1)Where an offence under this Chapter is committed by a company, every person, who at the time the offence was committed, was in charge of the company or was responsible for making the deposit, as the case may be, 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 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 (1), where any offence under this Chapter has been committed by a company and it is proved that such an offence has been committed with the consent or connivance 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 the 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
- It establishes that when a company commits a warehousing offence, both the company and the person in charge of its business are held guilty.
- It exempts individuals from liability if they can prove the offence occurred without their knowledge or that they did their best to prevent it.
- It extends personal guilt to directors, managers, secretaries, or other company officers if the corporate offence occurred with their consent or silent permission.
- It defines the word company to include corporations, partnership firms, and other associations of individuals.
- It defines the word director for a partnership firm as any partner in that firm.
Practical examples
FAQ
1. Who is held responsible if a company commits an offence under Section 44 of the Warehousing (Development and Regulation) Act, 2007?
Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, both the company itself and every person who was in charge of and responsible to the company for its business at the time of the offence are deemed guilty and punished.
2. How can a manager avoid personal liability for a company offence under Section 44 of the Warehousing (Development and Regulation) Act, 2007?
Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, a person can avoid liability if they prove that the offence occurred without their knowledge, or that they exercised all due diligence, meaning proper care and active effort, to prevent the offence.
3. Are partnership firms and partners covered under Section 44 of the Warehousing (Development and Regulation) Act, 2007?
Yes, under Section 44 of the Warehousing (Development and Regulation) Act, 2007, the term company includes a partnership firm, and the term director includes any partner in that firm.
4. Can a company secretary be prosecuted under Section 44 of the Warehousing (Development and Regulation) Act, 2007?
Yes, under Section 44 of the Warehousing (Development and Regulation) Act, 2007, if a corporate offence is committed with the consent or connivance of a company secretary, that secretary is deemed guilty and liable to be punished.
Test yourself
Q1.Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, if a corporate warehouse commits a storage offence, who is deemed guilty alongside the company?
Q2.Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, what must a company officer prove to be exempt from punishment for a corporate offence?
Q3.Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, how is a partnership firm treated in the event of a warehousing offence?
Q4.Under Section 44 of the Warehousing (Development and Regulation) Act, 2007, what happens to a company manager if an offence is committed with their consent or connivance?