Section 199 of MVA : Section 199: Offences By Companies

Explanation using Example

Imagine a scenario where a transport company, Speedy Deliveries Pvt. Ltd., operates a fleet of trucks for cargo transportation. One of their trucks is involved in overloading, which is an offence under The Motor Vehicles Act, 1988. The authorities decide to prosecute the company for this violation.

Under Section 199(1) of the Act, not only the company, Speedy Deliveries Pvt. Ltd., but also the person in charge of the company at the time of the offence, say the Transport Manager, Mr. Sharma, can be held responsible and prosecuted for the overloading offence. However, Mr. Sharma can avoid punishment if he proves that he had no knowledge of the overloading or that he took all necessary steps to prevent such an offence.

Additionally, if it is found that the overloading happened with the consent or due to the neglect of a specific individual in a higher position, like the CEO, Mr. Verma, as per Section 199(2), then Mr. Verma could also be deemed guilty and face legal action for the offence.