Chapter V - Offences and Penalties
Section 49
Section 49: offences by companies and power of court to publish name, place of business, etc., for companies convicted.
Section 49 can attribute an offence to the company and responsible individuals, permits a written director nomination with consent, and contains safeguards and publication rules.
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This article is for general information. Refer to the Legal Metrology Act, 2009 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Where an offence under this Act has been committed by a company,— (a) (i) the person, if any, who has been nominated under sub-section (2) to be in charge of, and responsible to, the company for the conduct of the business of the company (hereinafter in this section referred to as a person responsible); or (ii) where no person has been nominated, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company; and (b) the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge and that he exercised all due diligence to prevent the commission of such offence.
(2) Any company may, by order in writing, authorise any of its directors to exercise all such powers and take all such steps as may be necessary or expedient to prevent the commission by the company of any offence under this Act and may give notice to the Director or the concerned Controller or any legal metrology officer authorised in this behalf by such Controller (hereinafter in this section referred to as the authorised officer) in such form and in such manner as may be prescribed, that it has nominated such director as the person responsible, along with the written consent of such director for being so nominated. Explanation.—Where a company has different establishments or branches or different units in any establishment or branch, different persons may be nominated under this sub-section in relation to different establishments or branches or units and the person nominated in relation to any establishment, branch or unit shall be deemed to be the person responsible in respect of such establishment, branch or unit.
(3) The person nominated under sub-section (2) shall, until— (i) further notice cancelling such nomination is received from the company by the Director or the concerned Controller or the authorised officer; or (ii) he ceases to be a director of the company; or (iii) he makes a request in writing to the Director or the concerned Controller or the legal metrology officer under intimation to the company, to cancel the nomination, which request shall be complied with by the Director or the concerned Controller or the legal metrology officer, whichever is the earliest, continue to be the person responsible: Provided that where such person ceases to be a director of the company, he shall intimate the fact of such cessation to the Director or the concerned Controller or the authorised officer: Provided further that where such person makes a request under clause (iii) the Director or the concerned Controller or the authorised officer shall not cancel such nomination with effect from a date earlier than the date on which the request is made.
(4) Notwithstanding anything contained in the foregoing sub-sections, where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to the neglect on the part of, any director, manager, secretary or other officer, not being a person nominated under sub-section (2), such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
(5) Where any company is convicted under this Act for contravention of any of the provisions thereof, it shall be competent for the court convicting the company to cause the name and place of business of the company, nature of the contravention, the fact that the company has been so convicted and such other particulars as the court may consider to be appropriate in the circumstances of the case, to be published at the expense of the company in such newspaper or in such other manner as the court may direct.
(6) No publication under sub-section (5) shall be made until the period for preferring an appeal against the orders of the court has expired without any appeal having been preferred, or such an appeal, having been preferred, has been disposed of.
(7) The expenses of any publication under sub-section (5) shall be recoverable from the company as if it were a fine imposed by the court. Explanation.—For the purposes of this section,— (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm but excludes nominated directors, honorary directors, Government nominated directors.
Introduction
When a company commits an offence, subsection (1) identifies the company and a nominated responsible person, or in the absence of nomination those in charge and responsible for business. A nomination requires a written company order, director consent and prescribed notice.
Different establishments, branches or units may have different nominees. A nomination ends on the earliest statutory cancellation event; record director departure, withdrawal request and notice receipt. Nomination does not erase the company’s own exposure.
Key takeaways
Trigger
When a company commits an offence, subsection (1) identifies the company and a nominated responsible person, or in the absence of nomination those in charge and responsible for business. A nomination requires a written company order, director consent and prescribed notice.
Consequence or process
The responsible person has a defence only on proving both lack of knowledge and due diligence. Other officers can still be liable where consent, connivance or neglect is proved. A court may order publication of a company conviction at its expense, but publication waits until the appeal period passes or an appeal is disposed of.
Important limit
Different establishments, branches or units may have different nominees. A nomination ends on the earliest statutory cancellation event; record director departure, withdrawal request and notice receipt. Nomination does not erase the company’s own exposure.
Who and what the section covers
When a company commits an offence, subsection (1) identifies the company and a nominated responsible person, or in the absence of nomination those in charge and responsible for business. A nomination requires a written company order, director consent and prescribed notice.
Consequence and statutory process
The responsible person has a defence only on proving both lack of knowledge and due diligence. Other officers can still be liable where consent, connivance or neglect is proved. A court may order publication of a company conviction at its expense, but publication waits until the appeal period passes or an appeal is disposed of.
Practical steps
Maintain written nomination, consent and filed notice.
Track director changes and cancellation requests.
Retain due-diligence records and appeal deadlines.
Hypothetical example
A company with several branches documents a consenting director nomination for each relevant unit and files the prescribed notice. This is an illustration, not a statement of a decided case or an automatic exemption.
Cross references and limits
Different establishments, branches or units may have different nominees. A nomination ends on the earliest statutory cancellation event; record director departure, withdrawal request and notice receipt. Nomination does not erase the company’s own exposure.
Official sources
Practical checklist
Do
- Maintain written nomination, consent and filed notice.
- Track director changes and cancellation requests.
- Retain due-diligence records and appeal deadlines.
Avoid
- Do not treat a verbal designation as the written nomination and consent required by subsection (2).
- Do not assume a nomination removes company liability or the separate consent, connivance or neglect route for other officers.
- Do not publish a conviction under subsection (5) before the statutory appeal-period condition is satisfied.
Glossary
- Person responsible
- The nominated director, or where none is nominated a person in charge and responsible for company business at the offence time.
- Prescribed
- Set by applicable rules made under the Act.
Frequently asked questions
What triggers section 49?
When a company commits an offence, subsection (1) identifies the company and a nominated responsible person, or in the absence of nomination those in charge and responsible for business. A nomination requires a written company order, director consent and prescribed notice.
What is the statutory consequence or process?
The responsible person has a defence only on proving both lack of knowledge and due diligence. Other officers can still be liable where consent, connivance or neglect is proved. A court may order publication of a company conviction at its expense, but publication waits until the appeal period passes or an appeal is disposed of.
What is the key limit to check?
Different establishments, branches or units may have different nominees. A nomination ends on the earliest statutory cancellation event; record director departure, withdrawal request and notice receipt. Nomination does not erase the company’s own exposure.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026