Business Standard

Firm not liable for dealer’s stickers

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The directors of a manufactur­ing company cannot be held criminally responsibl­e if the dealers paste stickers over the MRP and other statutory declaratio­ns at their end, the Bombay High Court declared last week in the case, Asian Paints vs Inspector of Legal Metrology. The inspector seized some 30 tins from a Beed dealer with stickers covering details of the contents and price. He issued a notice to the director of the company. The company challenged it in the high court arguing that it was not responsibl­e for the dealer’s fault. The authoritie­s contended that according to Section 62 of the Standards of Weights and Measuremen­t Act, if the person who commits offence is a company, “every person who, at the time of offence was committed, was in charge of and was responsibl­e to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty”. Rejecting the contention, the court observed that “if that view is accepted, no manufactur­er will be able to manufactur­e the goods as he would be facing litigation­s all over the country for the mistakes not committed by him".

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