Section 86: Offences by Companies under the Land Acquisition Act 2013

Section 86 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 deals with criminal liability when an offence under the Act is committed by a company, firm, association of individuals or Requiring Body.

The RFCTLARR Act, 2013 - Act No. 30 of 2013 - Chapter XII: Offences and Penalties

What Section 86 provides

Section 86 creates responsibility for offences committed by a company under the RFCTLARR Act. It addresses two categories of persons: those who were in charge of and responsible to the company for its business when the offence was committed, and directors or other officers whose consent, connivance or neglect is proved in relation to the offence.

Key point: liability under Section 86 is connected to the role and responsibility of the person concerned. Sub-section (1) also expressly provides a defence where the person proves lack of knowledge or that due diligence was exercised to prevent the offence.

Section 86 - Offences by Companies

(1) 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, 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 if he proves that the offence was committed without his knowledge or that he had 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 that the commission of the offence 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.

Explanation. For the purposes of this section:

(a) "company" means any body corporate and includes a firm or other association of individuals and a Requiring Body; and

(b) "director", in relation to a firm, means a partner in the firm.

Meaning and legal effect of Section 86

1. Liability of persons in charge of the company

Under Section 86(1), when a company commits an offence under the Act, a person who was both in charge of and responsible to the company for the conduct of its business at the relevant time is deemed guilty and may be proceeded against and punished according to the applicable offence.

2. Defence of lack of knowledge or due diligence

The proviso to Section 86(1) protects a person who proves either that the offence occurred without his knowledge or that he exercised all due diligence to prevent its commission. The statutory wording therefore makes these matters directly relevant to personal liability under sub-section (1).

3. Consent, connivance or neglect of directors and officers

Section 86(2) operates in addition to sub-section (1). A director, manager, secretary or other officer may be deemed guilty where it is proved that the company's offence was committed with that person's consent or connivance, or is attributable to neglect on that person's part.

4. Wide meaning of company

For Section 86, the expression "company" is not confined to an incorporated company. The Explanation includes a body corporate, a firm, another association of individuals and a Requiring Body. In relation to a firm, "director" means a partner.

How Section 86 fits within Chapter XII

Section 86 appears in Chapter XII of the RFCTLARR Act, dealing with offences and penalties. It should therefore be read with the provision creating the relevant offence or penalty and with the procedural provisions in Sections 88 to 90 concerning cognizance, the non-cognizable character of offences and the persons authorised to file complaints.

Official text: For authoritative statutory language and current legislative material, refer to the official India Code text of the RFCTLARR Act, 2013 and the Department of Land Resources portal linked in the sidebar.

Related provisions

Page reviewed for statutory presentation and official resource links.