Section 9C of EA, 1884 : Section 9C: Offences By Companies

Explanation using Example

Example Application of Section 9C of The Explosives Act, 1884:

Imagine a scenario where XYZ Explosives Pvt. Ltd. is a company that manufactures and deals in explosives. Due to negligence in following safety protocols, an unauthorized person gains access to the storage facility and steals some explosives. This results in an offence under The Explosives Act, 1884.

Under Section 9C:

• The Managing Director and other key personnel in charge at the time of the theft would be considered guilty of the offence, along with the company itself, and could face legal proceedings.
• If the Managing Director can prove that he was unaware of the security lapse and had taken all necessary precautions to prevent such an incident, he might not be held liable.
• If it is discovered that the theft occurred due to the consent or negligence of a specific manager responsible for security, that manager would also be held accountable and could face punishment.