Greenary Limited, a Public Limited Company was in the business of generation and supply of electricity and had its factory near Krishnapatanam Beach. Mr. Pond, was the Vice-President (Operation), and was authorized by th
CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · December 2019
Greenary Limited, a Public Limited Company was in the business of generation and supply of electricity and had its factory near Krishnapatanam Beach. Mr. Pond, was the Vice-President (Operation), and was authorized by the Board of Directors of the Company to be in charge of the factory operations. As the factory was located on sea-shore, the Company was subject to the provisions of various Environmental Laws. The Company had not complied with the provisions relating to dumping/discharge of its production wastes, etc. Summons were issued against Mr. Pond by the adjudicating authority. Mr. Pond sent an email to you, the Company Secretary stating his designation would not tantamount to officer in default. Would you agree with Mr. Pond?
Answer & Explanation:
According to section 47 of the Water (Prevention and Control of Pollution) Act, 1974, where an offence under this Act has been committed by a company, every person 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, as well as the company, shall be deemed to the 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 for that he exercised all due diligence to prevent the commission of such offence. Where an offence under the 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 shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Mr. Pond, has been authorised by the Board of Directors to be the in charge of factory operations. As per section 47 of Water Act, 1974 he is deemed to the guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Topics: Environmental Laws
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