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

In a criminal proceeding against Rohit, a director of Dhara Foods Ltd, for breach of trust, the court finds he acted honestly and reasonably. Which statement correctly states the limit on the court's relief under section 463(1)?

In a criminal proceeding the court has no power to grant relief from any civil liability that may attach to the officer for the same breach of trust, even though he acted honestly and reasonably.

  1. AThe court may also excuse the civil liability attaching to the same breach
  2. BThe court can grant no relief at all in criminal proceedings
  3. CThe court cannot grant relief from any civil liability that may attach to him for that breachCorrect
  4. DThe court may grant relief only if the company agrees

Explanation

The proviso to section 463(1) states that in a criminal proceeding the court has no power to grant relief from civil liability attaching to the officer for the same default or breach. Relief in the criminal proceeding itself is still possible, so the second option is wrong.

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