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

Meghna Textiles Ltd's company secretary, Rohan, certified a return that was later found to contain a clerical misstatement. In civil proceedings for negligence against him, the court finds he acted honestly and reasonably and ought fairly to be excused. What can the court do under Section 463?

The court may relieve the officer either wholly or partly from liability on such terms as it thinks fit, provided he acted honestly and reasonably and ought fairly to be excused. Section 463(1) expressly allows partial relief, and no Central Government consent is needed.

  1. ARelieve him wholly or partly from liability on such terms as it thinks fitCorrect
  2. BRelieve him only wholly, and never partly
  3. CRelieve him only if the Central Government first consents
  4. DRefer the matter to the Registrar, who alone may grant the relief

Explanation

Section 463(1) lets the court relieve an officer either wholly or partly, on such terms as it thinks fit, if he acted honestly and reasonably and ought fairly to be excused. The option allowing only full relief is wrong because the section expressly permits partial relief. The Registrar only gets notice to show cause; he does not grant relief.

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