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Offences by Companies – Section 49 under Legal Metrology Act, 2009

calendar20 Apr, 2023
timeReading Time: 4 Minutes
Offences by Companies - Section 49 under Legal Metrology Act, 2009

Section 49 under Legal Metrology Act, 2009, a company should nominate anyone responsible for conducting its Business. So the person responsible for any offences by companies and the court’s power to publish the name, place of Business, etc., of companies convicted. These rules and procedures help the Business to assure their credibility towards their Business and help the Government to regulate the Business.

What Is Section 49 Under Legal Metrology Act, 2009?

Section 49 under Legal Metrology Act, 2009, a company should nominate anyone responsible for conducting its Business. So the person responsible for any offences by companies and the court’s power to publish the name, place of Business, etc., of companies convicted.

Procedures and Provisions in Section 49 under Legal Metrology Act, 2009

The following are the procedures that are provided in section 49 under Legal Metrology Act, 2009

  • Where a company has committed an offence under this Act,
    • The person who has been nominated under sub-section (2) to be in charge of, and responsible to, the Company for the conduct of the Business of the Company (after this in this section referred to as a person responsible) or where no person has been nominated, every person or authority 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 and
    • The Company or firm shall be deemed guilty of the offence and liable to be proceeded against and punished accordingly. Nothing contained in this sub-section shall affect the person liable for a punishment provided in this Act if he proves that the offence was committed without his knowledge or presence and that he exercised all due diligence to prevent the commission of such an offence.
  • Any company or firm, by order in writing, authorise any of its directors to exercise all the powers and take all such steps that are necessary or expedient to prevent the commission by the Company of any offence under this Act and give notice to the Director or authority of the concerned Controller or any legal metrology officer authorised in this behalf by such Controller in such manner as may be prescribed, that the business has nominated such director as the person responsible, along with the written consent of such director for being so nominated. Where a company has different establishments or branches or units in any establishment or branch, different persons may be nominated under this sub­section about different establishments or branches or units. The person nominated concerning any establishment or firm, division or unit shall be deemed to be the person responsible in respect of such establishment, division or unit.
  • The person nominated under sub-section (2) shall, until
  • Further notice cancelling such nomination is received from the Company by the Director or the concerned Controller or the authorised officer of Legal Metrology department, or
  • He ceases to be a director of the Company or
  • He makes a request to the Director or the concerned Controller or the legal metrology officer in writing under intimation to the Company, to cancel the nomination or in charge, which request shall be complied with by the Director or the concerned Controller or the legal metrology officer, whichever is the earliest, continue to be the person responsible. Provided that where such person ceases to be a director of the Company, he shall intimate the fact of such cessation to the Director or the concerned Controller or the authorised officer: Provided further that where a such person requests clause iii, the Director or the concerned Controller or the legally authorised officer shall not cancel such nomination with effect from a date earlier than the date on which the request is made.
  • Notwithstanding anything contained in the preceding sub-sections, where a company has committed an offence under this Act and it is proved that the offence has been committed with the consent or attributable to the neglect on the part of any director, manager, secretary or another officer, not being a person nominated under sub-section 2, such director, manager, secretary or any other officer shall also be guilty of the offences and also liable to be proceeded against and punished accordingly.
  • Where any company or firm is convicted under this Act for infringement of any provisions under the Act, it shall be competent for the court convicting the Company to cause the name and place of Business of the Company, nature of the infringement, the reason that the Company has been so convicted and such other particulars as the court may consider being correct in the circumstances, to be published at the expense of the Company or firm in such newspaper or in such other manner as the court may direct.
  • No publication under sub-section (5) shall be made until the period for preferring an appeal against the court’s orders has expired without any appeal or an appeal having been preferred.
  • The expenses of any publication under sub-section five shall be recoverable from the Company as if it were a fine imposed by the court. Explanation. For this section,
    • Company means any body corporate that  includes a firm or other association of individuals and
    • Director, concerning a firm, means a partner but excludes nominated, honorary, and government-nominated directors.

Conclusion

It is of atmost importance for the companies or firms to take an informed decision while nominating a person under Section 49(2), considering the grave consequences that may ensue in case of an offence. So section 49 under Legal Metrology Act, 2009[1] clearly states that a company should nominate any person who will be in charge and responsible for conducting its Business, which not only helps the Company legally but also ensures its credibility.

Read Our Article: New Amendment Under Section 49 Of The Legal Metrology Act, 2009

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