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

In a criminal proceeding against Vikram Rao, an officer of Sagar Metals Ltd, the court finds he acted honestly and reasonably and decides to excuse him. He also faces civil liability from the same default. What is the position under Section 463(1)?

In a criminal proceeding the court has no power to relieve the officer from civil liability attached to the same negligence, default, breach of duty, misfeasance or breach of trust. The proviso to Section 463(1) limits relief in the criminal case to that proceeding.

  1. AThe court may also relieve him from the civil liability attached to the default
  2. BThe court has no power in a criminal proceeding to grant relief from any civil liability attached to the defaultCorrect
  3. CThe court cannot grant any relief at all in a criminal proceeding
  4. DThe court may relieve civil liability only if the Registrar consents

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 any civil liability that may attach to the officer. Relief is still possible in the criminal matter itself, so the second option is the one that matches the proviso.

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