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

Vikram, an officer of Sagar Chemicals Ltd, faces a criminal prosecution for breach of duty and also a civil claim arising from the same breach. The criminal court finds he acted honestly and reasonably and excuses him in the criminal proceeding. What is the effect on his civil liability?

The criminal court cannot relieve him from civil liability. The proviso to Section 463(1) says that in a criminal proceeding under that sub-section, the court has no power to grant relief from any civil liability attaching to the officer for the same negligence, default or breach.

  1. AThe criminal court has no power to grant relief from the civil liability attaching to himCorrect
  2. BThe criminal court's relief automatically extinguishes the civil liability
  3. CThe criminal court may grant relief from civil liability only with Registrar's consent
  4. DCivil liability is halved by operation of law

Explanation

The proviso to Section 463(1) states that in a criminal proceeding the court has no power to grant relief from any civil liability attaching to the officer. So civil liability is untouched, making option B wrong.

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