Section 199 Motor Vehicles Act: Offences by companies

Section 199 of Motor Vehicles Act: Offences by companies

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:

Provided that nothing in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence was committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.— For the purposes of this section,—

(a) company means any body corporate and includes a firm or other association of individuals; and

(b) director, in relation to a firm, means a partner in the firm. [199A. Offences by juveniles. - (1) Where an offence under this Act has been committed by a juvenile, the guardian of such juvenile or the owner of the motor vehicle shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly

Provided that nothing in this sub-section shall render such guardian or owner liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

Explanation.— For the purposes of this section, the Court shall presume that the use of the motor vehicle by the juvenile was with the consent of the guardian of such juvenile or the owner of the motor vehicle, as the case may be.

(2) In addition to the penalty under sub-section (1), such guardian or owner shall be punishable with imprisonment for a term which may extend to three years and with a fine of twenty-five thousand rupees.

(3) The provisions of sub-section (1) and sub-section (2) shall not apply to such guardian or owner if the juvenile committing the offence had been granted a learner's licence under section 8 or a driving licence and was operating a motor vehicle which such juvenile was licensed to operate.

(4) Where an offence under this Act has been committed by a juvenile, the registration of the motor vehicle used in the commission of the offence shall be cancelled for a period of twelve months.

(5) Where an offence under this Act has been committed by a juvenile, then, notwithstanding section 4 or section 7, such juvenile shall not be eligible to be granted a driving licence under section 9 or a learner's licence under section 8 until such juvenile has attained the age of twenty-five years.

(6) Where an offence under this Act has been committed by a juvenile, then such juvenile shall be punishable with such fines as provided in the Act while any custodial sentence may be modified as per the provisions of the Juvenile Justice Act, 2000.] [199B. Revision of fines. - The fines as provided in this Act shall be increased by such amount not exceeding ten per cent. in value of the existing fines, on an annual basis on 1st day of April of each year from the date of commencement of the Motor Vehicles (Amendment) Act, 2019, as may be notified by the Central Government.]

Legal Commentary & Landmark Judgments: Section 199

Section 199 of the Motor Vehicles Act, 1988 codifies corporate criminal liability for vehicular and transport offences committed by companies, holding directors, managers, and officers in charge vicariously liable alongside the corporate entity, supplemented by the 2019 insertion of Section 199A governing juvenile motoring offences.

Vicarious Corporate Penal Liability: Section 199(1) provides that where an offence under the Act is committed by a company, every person who at the time of the offence was in charge of, and responsible to, the company for the conduct of its business, as well as the company, is deemed guilty.
Statutory Rebuttal through Due Diligence: Section 199(1) proviso affords a statutory defence if the accused director or officer proves that the offence was committed without their knowledge, or that they exercised all due diligence to prevent its commission.
Individual Liability for Connivance and Neglect: Section 199(2) establishes that where an offence is proved to have been committed with the consent, connivance, or neglect of any director, manager, secretary, or officer, they are personally liable to prosecution and punishment.
Interlocking Framework of Section 199A for Juveniles: Enacted alongside Section 199 by the 2019 Amendment, Section 199A imposes severe penal liability on guardians and vehicle owners (₹25,000 fine and 3 years imprisonment) where a juvenile commits a motoring offence using the vehicle.

Key Landmark Precedents:

Aneeta Hada v. Godfather Travels & Tours (P) Ltd. (2012) 5 SCC 661: A three-Judge Bench of the Supreme Court held that for vicarious corporate liability to arise under a statute, arraigning the company as an accused is an indispensable condition precedent; directors cannot be prosecuted in isolation without impleading the corporate entity.
SMS Pharmaceuticals Ltd. v. Neeta Bhalla (2005) 8 SCC 89: The Supreme Court held that there must be specific, affirmative factual averments in the complaint demonstrating that the individual director was actively in charge of and responsible for the day-to-day business of the company at the relevant time of the offence.

Courtroom Practice & Strategic Litigation Guidance:

In prosecutions against fleet-owning corporations (e.g., cab aggregators, logistics operators) under Section 199, prosecutors must explicitly name the company as Accused No. 1 and detail the operational roles of the designated directors. For corporate directors seeking quashing under Section 482 CrPC / Section 528 BNSS, establish the absence of active operational control over individual vehicles.

Section 199: Offences by companies

Section 199 of Motor Vehicles Act: Offences by companies

Legal Commentary & Landmark Judgments: Section 199