Sec. 112(a) – Simultaneously penalty on firm & partner restricted to alleged abetment by partner/firm – Bombay HC
Brief of the Case
Bombay High Court held that Simultaneous penalty can be imposed both on the partners and partnership-firm under Section 112 (a) where the charge on the firm is of acting or omitting to act rendering the goods liable for confiscation and the notice issued to the partner makes out a separate case of abetment on his part. This abetment should be in respect of the act and/or the omission to act on the part of the firm which has rendered the good liable for confiscation under Section 111 or where the allegation on the firm is of abetment and / or mens rea, then Section 135(1)(a) and 140 is applicable and simultaneous penalty is imposable. It is clear that in all other cases falling under Section 112 (a) simultaneous penalties upon the firm and its partner cannot be imposed. No penalty can be imposed upon the partner ipso facto merely on account of the fact that penalty is being imposed on partnership-firm.
Facts of the Case
The Appellants are engaged in the manufacture of textile machines. The following questions have been referred for opinion –
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