Report No. 156
Issue No. 4
Eight Judges including Addl. Registrar agreed with the recommendations on constructive liability of Companies by inserting new sections 94A and 94B.
One State Government agreed, however, another State Government does not agree with the proposal.
One Advocate responded in the affirmative. Another Advocate has quoted a case of Hindustan Steels Ltd. v. State of Orissa, 25 STC 211 and section 100 of Factories Act alongwith other details and does not favour the proposal.
Five police officers do not support the proposed amendment and one of them has suggested that it can be done in a special statute like the Company Act, but not in I.P.C.
The State Law Commission agreed with the suggestion.
'Federation of Indian Chamers of Commerce and Industry' is of the view that the said proposal is uncalled for because the economic legislation already provide for vicarious liability of Directors in respect of offences committed by the Company. Further, it has not talked about any other issue.