Section 32 of IDA : Section 32: Offence By Companies, Etc

Explanation using Example

Imagine a scenario where a manufacturing company fails to comply with the terms of a settlement reached after an industrial dispute. This non-compliance is an offence under The Industrial Disputes Act, 1947. According to Section 32, not only is the company itself responsible, but also its directors and managers could be held liable. For instance, if the company had agreed to increase wages but did not do so, the directors would need to prove that they had no knowledge of this failure or that they did not consent to it in order to avoid being deemed guilty of the offence.