Chapter XIV FINANCE, ACCOUNTS, AUDIT AND REPORTS

38. (1) Whoever –

1. (a) without reasonable cause prevents or obstructs any officer of the State Government or of the local authority or of the Authority or Offences and penalties. Annual Report xxxvii the Commissioner or the Collector from carrying out functions under this Act; or
2. (b) without reasonable cause refuses to comply with the direction given by an officer of the State Government or the Authority or the Commissioner or the Collector while carrying out his functions under this Act; or
3. (c) falsely predicts the occurrence of a disaster without any scientific basis and thereby creates panic in the community; or
4. (d) makes a false claim for assistance for reconstruction or repair from any officer of the State Government or Authority or the Commissioner or the Collector, shall on conviction be punishable with imprisonment for a term which may extend to six months or with fine which may extend to ten thousand rupees or both.

39. (1) No Magistrate shall take cognizance of an offence under section 38 except on a complaint in writing made by an officer of the Authority generally or specially authorised in this behalf or the Commissioner or the Collector.

1. (2) Notwithstanding anything contained in section 200 of the Code of Criminal Procedure, 1973 it shall not be necessary in respect of the offence referred to in sub-section (1) to examine the authorised officer of the Authority the Commissioner or the Collector when the complaint is presented in writing. 40. (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence is 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 Cognizance of offences. 2 of 1974. Offences by companies. xxxviii that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (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 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 purpose of this section –
   • (a) “company” means a body corporate and includes a company as defined under the Companies Act, 1956, a firm or other association of individuals; and
   • (b) “director” in relation to a firm means a partner in the firm.