Legal Metrology – Compounding Fees

Legal Metrology – Compounding Fees

Legal Metrology – compounding fees not to be paid by Directors not nominated – the petitioner – Maruti Suzuki India Limited, challenges the orders of the Deputy Controller of Legal Metrology and the Controller of Legal Metrology, directing the 12 directors of the petitioner-company and the company to pay the compounding fees – the petitioner – Maruti Suzuki India Limited, challenges the orders of the Deputy Controller of Legal Metrology and the Controller of Legal Metrology, directing the 12 directors of the petitioner company and the company to pay the compounding fees – Under Section 49(1) of the Act, only the nominated Director and the Company is deemed to be guilty of the offence and is liable to be proceeded against and punished.

Since, the petitioner company has nominated the Director under Section 49 (2) and since, the nomination was certified by the Director of the Legal Metrology, only the nominated Director and the Company could have been proceeded against and punished. If, the other Directors could not have been proceeded against under Section 49(1) after the nomination of the Director under section 49(2), the imposition of the compounding charges on the other Directors of the Company was not justified – the impugned orders are modified. The compounding fees are liable to be paid by the petitioner company and the nominated Director only. Rule is made absolute. (Maruti Suzuki India Limited vs. State of Maharashtra and others)

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