Offences by companies
Section 38 of the Narcotic Drugs and Psychotropic Substances Act, 1985 deals with offences by companies. Where an offence under Chapter IV 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 offence and sha The Act came into force on 14 Nov 1985.
(1) Where an offence under Chapter IV 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 offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under Chapter IV has been committed by a company and it is proved that the offence has been 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 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.
Section 38, The Narcotic Drugs and Psychotropic Substances Act, 1985 (Act 61 of 1985).
Questions about Section 38
What does Section 38 of the Narcotic Drugs and Psychotropic Substances Act deal with?
Section 38 of the Narcotic Drugs and Psychotropic Substances Act is headed "Offences by companies". Where an offence under Chapter IV 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 offence and sha
How do I find court cases under Section 38 of the Narcotic Drugs and Psychotropic Substances Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NDPS Act 38, section 38 NDPS Act, section 38 of the Narcotic Drugs and Psychotropic Substances Act. People searching for it also type 38 ndps act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 38 of the Narcotic Drugs and Psychotropic Substances Act come into force?
Section 38 of the Narcotic Drugs and Psychotropic Substances Act, cited as NDPS Act 38, came into force on 14 Nov 1985, having been enacted on 16 Sep 1985. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1747 words
- 68B. Definitions819 words
- 9. Power of Central Government to permit, control and regulate816 words
- 36A. Offences triable by Special Courts631 words
- 10. Power of State Government to permit, control and regulate568 words
- 42. Power of entry, search, seizure and arrest without warrant or authorisation507 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.