22C. Offences by companies.—
(1) If the person committing any offence under this Act is a
company, every person who at the time the offence was committed, was incharge 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 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 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 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.
Uttar Pradesh
Insertion of new section 22-CC, in Act (11 of 1948).—In the minimum Wages Act, after section
22-C, the following section shall be inserted, namely:—
“22-CC. Compounding of offence.—An Officer specially empowered by the State Government
in this behalf by notification may, subject to any general or special order of the State Government in
this behalf, compound any offence punishable under this Act with fine only committed for the first
time, either before or after the institution of the prosecution, on realization of such amount of
composition fee as he thinks fit, not exceeding the maximum amount of fine fixed for the offence;
and where the offence is so compounded—
(i) before the institution of the prosecution, the offender shall not be liable to prosecution for
such offence and shall, if in custody, be set at liberty;
(ii) before the institution of the prosecution, the composition shall amount to acquittal of the
offender.’’
[Vide Uttar Pradesh Act 35 of 1979, s. 3]
