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

In a criminal proceeding against Vikram, an officer of Delta Polymers Ltd, for breach of duty, the court finds he acted honestly and reasonably and is minded to excuse him. Vikram also faces a civil claim by the company for the same breach. What is the position under Section 463?

The criminal court cannot relieve him from civil liability. 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 the negligence, default, breach of duty, misfeasance or breach of trust.

  1. AThe criminal court may also relieve him from the civil liability in the same order
  2. BThe criminal court has no power to grant relief from any civil liability attaching to him for that breachCorrect
  3. CThe criminal court may relieve civil liability only if the company consents
  4. DRelief is barred altogether in criminal proceedings

Explanation

The proviso to Section 463(1) says that in a criminal proceeding under the sub-section the court has no power to grant relief from civil liability. Relief in the criminal matter itself is not barred, so the last option is wrong, and company consent does not change the proviso.

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