By Rupin Chopra and Apalka Bareja
Department of Consumer Affairs, Government of India vide its notification has notified Legal Metrology (General) Amendment Rules, 2022 dated October 4, 2022, according to which the following amendment has taken place:
According to Section 49 (2) of the Legal Metrology Act, 2009 allows companies to nominate their directors as the person responsible for the business of the company
“Any company may, by order in writing, authorize any of its directors to exercise all such powers and take all such steps as may be necessary or expedient to prevent the commission by the company of any offence under this Act and may give notice to the Director or the concerned Controller or any legal metrology officer authorized in this behalf by such Controller (hereinafter in this section referred to as the authorized officer) in such form and in such manner as may be prescribed, that it has nominated such director as the person responsible, along with the written consent of such director for being so nominated”
As per the above section in case of any violation under the Legal Metrology Act, 2009 the directors of the companies were prosecuted and held responsible.
In order to promote ease of doing business the following has been amended in Rule 29 of Legal Metrology (General) Rules, 2011:
“Provided that where a company has different establishment or branch or different unit in any establishment or branch, an officer who has the authority and responsibility for planning, directing and controlling the activities of the establishment or branch or different unit may be nominated under subsection (2) of section 49 to be in-charge of and be responsible for the conduct of business of the establishment, branch or unit thereof.”
According to the amended rule 29, now the company can nominate an officer of the establishment or branch or unit in any establishment or branch who has the authority and responsibility for planning, directing and controlling the activities of the respective establishment or branch or unit in any establishment or branch.
This amendment would help the companies to nominate a person who is actually responsible for the day to day activities of an establishment or branch or unit of the company instead of the director of the company who is involved in the day to day activity of every branch or unit or establishment. Therefore, if there are several branches or unit or establishment in the organization each nominated officer of that specific branch or unit or establishment will be responsible for and liable for the compliance of the provisions of the Legal Metrology Act, 2009 and the Rules thereunder.