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CS Professional · Compliance Management, Audit and Due Diligence · Relief and Remedies

A court is hearing a criminal proceeding against Arjun, an officer of Neel Metals Ltd, for breach of trust. It finds he acted honestly and reasonably and decides to excuse him. What is the position on his civil liability under section 463?

The court cannot relieve him from civil liability in the criminal proceeding. The proviso to section 463(1) expressly denies a court hearing a criminal proceeding the power to grant relief from any civil liability attaching to the officer for the same negligence, default, breach of duty, misfeasance or breach of trust.

  1. AThe court may also relieve him from civil liability arising from the same breach
  2. BCivil liability is automatically extinguished once criminal relief is granted
  3. CThe court cannot grant relief from civil liability in the criminal proceedingCorrect
  4. DCivil liability can be relieved only if the Registrar consents

Explanation

The proviso to section 463(1) states that in a criminal proceeding the court has no power to grant relief from any civil liability attaching to the officer for that conduct. Relief from civil liability must come in civil proceedings.

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