This section is for the adjudication of penalties under the Act, outlining the appointment of adjudicating officers, their powers, and the appeal process.
Penalty
(8) (i) Where company 3[fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees.
(8)(ii) 4[Where an officer of a company or any other person] who is in default 5[fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.
What the section says
In plain terms
(1)The Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of this Act in the manner as may be prescribed.
The Central Government may appoint officers of the Central Government, not below the rank of Registrar, as adjudicating officers to judge penalties under this Act.
(2)The Central Government shall while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1).
The Central Government must specify the jurisdiction of these adjudicating officers when appointing them.
(3)The adjudicating officer may, by an order—
The adjudicating officer may impose a penalty and direct the company or person to rectify the default, unless the default has been rectified within thirty days of the notice, in which case no penalty will be imposed.
(3)(a)impose the penalty on the company, the officer who is in default, or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this Act; and (b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit.] 1[Provided that in case the default relates to non-compliance of
sub-section (4) of section 92 or sub- section (1) or
sub-section (2) of section 137 and such default has been rectified either prior to, or within thirty days of, the issue of the notice by the adjudicating officer, no penalty shall be imposed in this regard and all proceedings under this section in respect of such default shall be deemed to be concluded.]
(4)The adjudicating officer shall, before imposing any penalty, give a reasonable opportunity of being heard to 2[such company, the officer who is in default or any other person].
The adjudicating officer must give a reasonable opportunity of being heard to the company, officer, or person before imposing any penalty.
(5)Any person aggrieved by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter.
A person aggrieved by the adjudicating officer's order may appeal to the Regional Director having jurisdiction in the matter.
(6)Every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed.
The appeal must be filed within sixty days from the date the order was received and be in a prescribed form and manner, accompanied by a prescribed fee.
(7)The Regional Director may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against.
The Regional Director may pass an order confirming, modifying, or setting aside the order appealed against after giving the parties an opportunity to be heard.
(8)(i) Where company 3[fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees.
If a company or officer fails to comply with the order within ninety days, they will be punishable with a fine of not less than twenty-five thousand rupees, which may extend to five lakh rupees for companies or imprisonment of up to six months or a fine of not less than twenty-five thousand rupees but not more than one lakh rupees for officers.
(8)(ii)4[Where an officer of a company or any other person] who is in default 5[fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.