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CS Professional · Compliance Management, Audit and Due Diligence · Non-Compliances, Penalties and Adjudications

Kaveri Textiles Ltd is charged with an offence under the Companies Act, 2013 punishable with imprisonment up to three years. The Special Court decides to try it summarily and convicts the officer. What is the maximum imprisonment it can impose in this summary trial?

The maximum is one year. A Special Court may try offences punishable with up to three years' imprisonment summarily, but on conviction in a summary trial it cannot pass imprisonment exceeding one year.

  1. ASix months
  2. BOne yearCorrect
  3. CTwo years
  4. DThree years

Explanation

The Special Court may try summarily any offence punishable with imprisonment not exceeding three years. On conviction in a summary trial, no sentence of imprisonment exceeding one year may be passed. Three years is the offence ceiling, not the summary-trial cap.

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