of

· ·. (1) Where an offence committed by a person under this Act Offences by Companies, is a company, every person who, at thetime the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall beliable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (I), where an offence · underthis Act has been committed by a company and itis proved thatthe offence has been committed withthe consent or connivance of, or is attributable to any negligence on thepart of, any director, manager, secretary or other officerofthe company, such director, manager, secretary or otherofficer shall also be deemed to be 'gllilty ofthat offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence underthis.Acthas been committed by a taxable personbeing a partnership firm ora Limited Liability Partnership ora. Hindu undivid? family or a trust, the partner or karta or managing tfUstee shall be deemed to be guilty of that offen? and shallbeliable to be proceeded against and punished accordingly and the provisions ofsub-section (2) shall mutatis mutandis apply to such persons. · (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed·withouthis knowledge or thathehad exercisedall duediligence to prevent the commission ofsuch offence. · Explanation:-For the purposes ofthis section,- 2 of 1974 134 (i) "company" means a body corporate and includes a firm or other association of individuals; and .(ii) "dlrector'; in relation, to a firm, means'a partner in the firm. ·