Section 86: Punishment for contravention

Companies Act, 2013 · Chapter VI: Registration Of Charges · In force

This section is for punishing companies and individuals who contravene the provisions of this Chapter.

Penalty

(1) 1[ 2[(1)] If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees].

The section, clause by clause

What the section says

In plain terms

(1)1[ 2[(1)] If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees].

If a company fails to comply with any provision of this Chapter, it will be liable to a penalty of five lakh rupees and every defaulting officer will be liable to a penalty of fifty thousand rupees.

(2)If any person willfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.]

A person who willfully provides false information or suppresses material information required under section 77 will be liable for action under section 447.

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

1. Subs. by Act 29 of 2020, s. 16, for sub-section (1) (w.e.f. 21-12-2020).
2. Section 86 numbered as sub-section (1) thereof by Act 22 of 2019, s.12 (w.e.f. 2-11-2018).
3. Ins. by s. 12, ibid. (w.e.f. 2-11-2018).
4. Subs. by s. 13, ibid., for section 86 (w.e.f. 2-11-2018).
5. Subs. by Act 29 of 2020, s. 17, for sub-section (5) (w.e.f. 21-12-2020).

This section refers to

s. 77 Duty to register charges, etc s. 447 Punishment for fraud

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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.