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

Mr. Sameer Khanna, a director of Deccan Metals Ltd., is prosecuted in a criminal proceeding for breach of duty. The court is satisfied he acted honestly and reasonably and ought fairly to be excused. What is the extent of the court's power to relieve him in that criminal proceeding?

The court may excuse him in respect of the criminal proceeding if he acted honestly and reasonably, but it cannot relieve him from any civil liability arising from the same breach. The proviso to section 463(1) expressly denies that power in a criminal proceeding.

  1. AIt may relieve him from both criminal and civil liability
  2. BIt may relieve him only from civil liability
  3. CIt may relieve him from criminal liability but has no power to grant relief from any civil liability that may attach to himCorrect
  4. DIt has no power to grant any relief in a criminal proceeding

Explanation

Section 463(1) applies to proceedings for negligence, default, breach of duty, misfeasance or breach of trust, and the proviso says that in a criminal proceeding the court has no power to grant relief from any civil liability attaching to the officer. Relief from the criminal liability itself is possible if he acted honestly and reasonably and ought fairly to be excused.

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