Section 27 of the National Green Tribunal Act, 2010: Offences by Companies
Section 27 of the National Green Tribunal Act, 2010 deals with criminal liability where an offence under the Act is committed by a company. It identifies when the company and persons responsible for its business may be proceeded against, and it also covers liability arising from consent, connivance or neglect of specified officers.
Meaning and scope of Section 27
The provision creates a statutory framework for fixing responsibility when a company commits an offence under the NGT Act. Liability is not confined to the corporate entity. A person who was directly in charge of and responsible to the company for the conduct of its business at the relevant time may also be deemed guilty, subject to the defence provided by the section.
Section 27 - statutory provision
27. Offences by companies.
(1) Where any offence under this Act has been committed by a company, every person who, at the time the offence was committed, was directly 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 be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Proviso: Such a person is not liable to punishment if the person proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of the offence.
(2) Where an offence committed by a company is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, any director, manager, secretary or other officer of the company, that officer is also deemed guilty and is liable to be proceeded against and punished accordingly.
Explanation: For this section, "company" means any body corporate and includes a firm or other association of individuals. "Director", in relation to a firm, means a partner in the firm.
Who can be liable under Section 27?
- The company: The corporate or other entity that committed the offence.
- Person in charge and responsible for business: A person satisfying the responsibility requirement in Section 27(1) at the time of the offence.
- Director, manager, secretary or other officer: Such an officer may incur liability under Section 27(2) where consent, connivance or attributable neglect is proved.
- Partners: Because a firm is included within "company", the explanation treats a partner as a "director" in relation to a firm.
Defence of lack of knowledge or due diligence
The proviso to Section 27(1) expressly protects a person who proves either that the offence occurred without his knowledge or that he exercised all due diligence to prevent it. The statutory wording therefore makes the person's role, knowledge and preventive conduct relevant to individual liability.
Consent, connivance and neglect under Section 27(2)
Sub-section (2) operates notwithstanding sub-section (1). It addresses officers whose consent or connivance is connected with the offence, as well as cases where the offence is attributable to their neglect. The provision specifically names a director, manager and secretary and also extends to another officer of the company where the statutory condition is proved.
Definitions used in Section 27
Company: For Section 27, the expression is wider than an incorporated company. It includes any body corporate, a firm and another association of individuals.
Director: In relation to a firm, the term means a partner of the firm.
Related provisions of the NGT Act
Section 26 deals with penalty for failure to comply with orders of the Tribunal. Section 28 separately addresses offences by Government Departments. Section 30 concerns cognizance of offences.
Official legal resources
India Code - National Green Tribunal Act, 2010
National Green Tribunal - Official Website