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

Meridian Textiles Ltd's company secretary, Ms. Kavita Rao, is sued in civil proceedings for negligence in filing a statutory return late. The court finds she may be liable, but that she acted honestly and reasonably and ought fairly to be excused in all the circumstances. What may the court do under Section 463?

The court may relieve her wholly or partly from liability on such terms as it thinks fit. Section 463(1) allows this where an officer has acted honestly and reasonably and ought fairly to be excused, having regard to all circumstances of the case.

  1. ARelieve her wholly or partly from liability on such terms as it thinks fitCorrect
  2. BRelieve her only wholly, and never partly
  3. CRelieve her only if the Registrar consents in writing
  4. DRefer the matter to the Central Government, which alone can excuse her

Explanation

Section 463(1) lets the court relieve an officer, either wholly or partly, on such terms as it thinks fit, where the officer has acted honestly and reasonably and ought fairly to be excused. Partial relief is expressly allowed, so the option limiting relief to full relief is wrong. The Registrar is only called upon to show cause under sub-section (3); the Registrar's consent is not required.

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