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

Mehta Textiles Ltd's compliance officer, Rohan, filed a delayed return due to a software error and is now sued by the company for negligence. The court finds he may be liable but acted honestly and reasonably, and that he ought fairly to be excused. Under Section 463, what may the court do?

The court may relieve the officer wholly or partly from liability on such terms as it thinks fit, because he acted honestly and reasonably and ought fairly to be excused. Section 463(1) expressly permits partial relief, so relief is not limited to complete exoneration.

  1. ARelieve him wholly or partly from liability on such terms as it thinks fitCorrect
  2. BRelieve him only wholly, never partly
  3. CRefer the matter to the Registrar who must decide the relief
  4. DRefuse relief because negligence can never be excused

Explanation

Section 463(1) lets the court relieve an officer either wholly or partly, on terms it thinks fit, if he acted honestly and reasonably and ought fairly to be excused. Option B is wrong because partial relief is expressly allowed.

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