Background

On 4th October 2022, the Legal Metrology (General) Rules, 2011 ("Rules") were modified through the Legal Metrology (General) Amendment Rules, 2022 ("Amendment"). This Amendment brought about a welcome change in Rule 29 by creating a provision for shifting the ownership and responsibility of compliance with the Legal Metrology Act, 2009 ("Act") read along with all the applicable rules, from the nominated director(s) to the persons who are actually responsible for the activities of the establishments or branches of the company. It is a step towards implementation of affixing responsibility on the appropriate people in the organisation especially when companies deal with multiple branches or units at pan India level.

Legal Amendment - Update

Vide the Amendment, rule 29 of the Rules was modified and the following proviso was inserted:

"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."

Impact and way forward for Corporates

  1. With this amendment companies having different establishments or branches or different units in any establishment or branch can now nominate an officer who is authorised and who is actually responsible for the operations of the said establishment or branch or unit instead of a director. This will ensure that notices for any violations committed by a particular establishment, branch or unit are issued only to the nominated person and not to a director who is not responsible for the violation. Ideally, a site head or branch head having authority and responsibility for the operations and activities of the establishments or branches or different units, should be considered for nomination.
  2. Further, it is also important to run awareness campaigns with the new nominees to ensure that they are aware about some of the provisions have serious consequences and are not limited to just a monetary penalty. Hence, they should ensure absolute compliance with the Act, read along with all the applicable rules, at all times.
  3. The form prescribed under Schedule 13 (Thirteen), through which an entity could only nominate a director, in the Amendment, importantly, substitutes the word "Director" with "(name and designation of the officer nominated under rule 29)" thereby ensuring that the amendment brought about in rule 29 can be implemented.
  4. Dilemma - compounding provision under legal metrology act and rules certainly needs clarification in view of the above Amendment.

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