Section 454A: Penalty for repeated default
This section is for imposing a higher penalty on companies or individuals that repeatedly default under the Act within a 3-year period.
The section, clause by clause
What the section says
In plain terms
Where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act.]
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.
Amendment notes
- 3. Ins. by Act 29 of 2020, s. 65 (w.e.f. 22-1-2021).
- 1. Subs. by Act 22 of 2019, s. 42, for “such company and the officer who is in default” (w.e.f. 2-11-2018).
- 2. Subs. by s. 42, ibid., for “does not pay the penalty imposed by the adjudicating officer or the Regional Director” (w.e.f. 2-11- 2018).
- 3. The words “Where an officer of a company or any other person” omitted by s. 42, ibid., (w.e.f. 2-11-2018).
- 4. The words “does not pay the penalty” omitted by s. 42, ibid. (w.e.f.. 2-11-2018).
- 5. Ins. by s. 43, ibid. (w.e.f. 2-11-2018).
Search the whole Act, or ask it a question, in the interactive browser.
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.