CA KOUSHIK MUKHESH PENALTY CHART FOR CA INTER EXAMS KOUSHIKS PAATHASHALAW

Penalty Chart – Companies Act, 2013

Section Punishment
447 – Common Punishment for fraud Under Section 447 (Sec. 447)
Punishment for
ì 6 Months ü
Fraud í ý ≤ Imprisonment ≤ (10 years)
î 3 Years þ
AND
Fraud Amount (100%) ≤ Penalty ≤ 3 × Fraud Amount (300%)
Where the fraud in question Involves public interest, the term
of imprisonment shall not be less than 3 years

Punishment for Fraud Under Section 447 (Mini 447)

Where the fraud amount ≤ Lower of: (1) 10 Lakhs or (2) 1% of
the Turnover.
AND
Does not involve Public Interest, Punishment shall be:-
Imprisonment ≤ 5 years or
Fine ≤ ₹ 50 Lakhs OR (Amendment) or BOTH
4 – Where after reservation of name, it is found that name was applied
Memorandum by furnishing wrong or incorrect information, then –
Case I
If the company has not been incorporated, the reserved name shall
be cancelled and the person making application in INV – 1 shall be
liable to a penalty which may extend to ₹ 1,00,000;
Case II
If the company has been incorporated, the Registrar may, after
giving the company an opportunity of being heard –
(i) Either direct the company to change its name within a
period of 3 months, after passing an ordinary resolution;
(ii) Take action for striking off the name of the company from the
register of companies; or
(iii) Make a petition for winding up of the company.

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7 – If any person furnishes any false or incorrect particulars of any

Incorporation information or suppresses any material information, of which
he is aware in any of the documents filed with the Registrar in
relation to the registration of a company, he shall be liable for
action Under Section 447.
Rule 7A – OPC If an OPC or any officer of such company contravenes any of the
provisions of these rules, the OPC or any officer of the such
company shall be punishable with fine which may extend to ₹
5,000 and with a further fine which may extend to ₹ 500 for every
day after the first offence during which such contravention
continues.
8 – Not for Profit Where any default is made in complying with the provisions of this
Company Section, the punishment shall be as follows:
On Company ₹ 10,00,000 ≤ Fine ≤ 1,00,00,000
On Officer in Imprisonment ≤ 3 years or
Default: ₹ 25,000 ≤ Fine ≤ ₹ 25,00,000 or
Or Both
Provided that when it is proved that the affairs of the company
were conducted fraudulently, every officer in default shall be liable
for action Under Section 447.
10A – If any default is made in complying with the requirements of this
Commencement Section, then punishment shall be as follows:
(Form On Company Fine ≤ 50,000
INC=20A)
On Officer in Fine of ₹ 1,000 for each day during which
Default: such default continues but ≤ ₹ 1,00,000
12 – Registered If any default is made in complying with the requirements of this
Office Section, then punishment shall be as follows:
On Officer in Fine of ₹ 1,000 for each day during which
Default: such default continues but ≤ ₹ 1,00,000
15 – Alteration If a company makes any default in complying with the above
of MOA, AOA provisions, the company and every officer who is in default shall be
noted in every liable to a penalty of ₹ 1,000/- for every copy of the memorandum
copy or articles issued without such alteration.

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16 – On Company ₹ 1,000/- for each day during which such

Rectification of default
Name On Officer in ₹ 5,000 ≤ Fine ≤ ₹ 1,00,000
Default:
17 – Copies of If a company makes any default in complying with the provisions
MOA, AOA of of this Section, the company and every officer of the company who
members is in default shall be liable for each default, to a penalty of ₹ 1,000/-
for each day during which such default continues or ₹ 1,00,000 –
whichever is less
26 – Prospectus On Company ₹ 50,000 ≤ Fine ≤ ₹ 3 Lakhs
On Officer in Imprisonment ≤ 3 years or
Default: ₹ 50,000 ≤ Fine ≤ ₹ 3,00,000 or
Or Both
33 – Abridged If a company makes any default in complying with the provisions
prospectus of this Section, it shall be liable to a penalty of ₹ 50,000 for each
default.
34 – Criminal Where a prospectus is issued, circulated or distributed that
Liability for MS includes any statement which is untrue or misleading, in form
in Prospectus or context in which it is included then every person who authorizes
the issue of such prospectus shall be liable under Section 447.
36 – Any person who:
Punishment for 1) Knowingly or recklessly makes any statement, promise or
Fraudulently forecast which is false, deceptive or misleading, or
inducing 2) Deliberately conceals any material facts,
Persons to
To induce another person to invest in the securities for the
Invest Money
following purposes shall be liable for action Under Section 447.
38 – Any person who:
Punishment for 1) Makes or abets making of an application in a fictitious name
Personation for to a company for acquiring or subscribing for its securities; or
Acquisition, etc. 2) Makes or abets making of multiple applications in different
of Securities combinations of his name or surname for acquiring or
subscribing to a company for its securities; or

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3) Otherwise induces a company to allot, or register any transfer

of securities to him, or to any other person in a fictitious name,
shall be liable for action Under Section 447.
39 – Allotment In case of any default, the company and its officer who is in default
shall be liable to a penalty of lower of:
1) ₹ 1,000 for each day during which such default continues or
2) ₹ 1,00,000.
40 – Securities On Company ₹ 5,00,000 ≤ Fine ≤ 50,000 Lakhs
listing on Stock On Officer in Imprisonment ≤ 1 year or
Exchange Default: ₹ 50,000 ≤ Fine ≤ ₹ 3,00,000 or
Or Both
42 – Private If a company makes an offer or accepts monies in contravention of
Placement this Section, the company, its promoters and Directors shall be
liable for a penalty which is LOWER of:
1) Amount involved in the offer or
2) ₹ 2 Crores
Also, the company shall also refund all monies to subscribes
within a period of 30 days of the order imposing the penalty.
46 – Share If a company with intent to defraud issues a duplicate certificate of
Certificates shares, then the punishment shall be as follows:
On Company ₹ 5X ≤ Fine ≤ 10X
Or ₹ 10 Crores whichever is HIGHER
On Officer in Punishment Under Section 447
Default:
48 – Variation of Where any default is made in complying with the provisions of this
Shareholders’ Section, the punishment shall be as follows:
Rights On Company ₹ 25,000 ≤ Fine ≤ 5,00,000
On Officer in Imprisonment ≤ 6 Months or
Default: ₹ 25,000 ≤ Fine ≤ ₹ 5,00,000 or
Or Both
53 – Prohibition Where any default is made in complying with the provisions of this
on Issue of Section, he punishment shall be as follows:

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Shares at On Company and Penalty ≤ Lower of:-

Discount every officer in (a) Amount Raised
default (b)₹ 5,00,000
On Company Refund all money with interest at
the rate of 12% p.a.
56 – Transfer of Where any default is made in complying with the provisions of this
Securities Section, the punishment shall be as follows:
On Company ₹ 25,000 ≤ Fine ≤ 5,00,000
On Officer in Default: ₹ 10,000 ≤ Fine ≤ ₹ 1,00,000
57 – If any person, deceitfully personates as an owner of any security in
Punishment for a company and thereby obtains or attempts to obtain any such
Personation of security or interest or any such share warrant or coupon or
Shareholders receives or attempts to receive any money due to any such owner,
he shall be punishable as follows:
Punishment 1 Year Imprisonment ≤ 3 years
AND
₹ 1,00,000 ≤ Fine ≤ ₹ 5,00,000
58 – Refusal of If a person contravenes the order of the Tribunal Under this
Registration & Section, he shall be punishable as follows:
Appeal against Punishment 1 Year ≤ Imprisonment ≤ 3 years
Refusal
AND
₹ 1,00,000 ≤ Fine ≤ ₹ 5,00,000
59 – If a person contravenes the order of the Tribunal Under Section,
Rectification of the punishment shall be as follows:
Register of On Company ₹ 1,00,000 ≤ Fine ≤ 5,00,000
Members
On Officer in Default: Imprisonment ≤ 1 year or
₹ 1,00,000 ≤ Fine ≤ ₹ 3,00,000 or
Or Both
60 – Publication If any defaults is made in complying with the above, the company
of Authorised, shall be liable to pay a penalty of ₹ 10,000 and every officer of the
Subscribed & company who is in default shall be liable to pay a penalty of ₹ 5,000
Paid-up Capital for each default.

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64 – Notice to Where any company fails to comply with the above provisions,
ROC for Change such company and every officer who is in default shall be liable to
in Share capital a penalty of ₹ 1,000 for each day during which such default
(SH-7) continues, or ₹ 5,00,000 whichever is less:
66 – Reduction Punishment for Contravention on Company ₹ 5,00,000 ≤ Fine
of Share capital ≤ ₹ 25,00,000.
67 – If a person contravenes these provisions, the punishment shall be
Restrictions on as follows:
Purchase by On Company ₹ 1,00,000 ≤ Fine ≤ 25,00,000
Company or
On Officer in Default: Imprisonment ≤ 3 years or
giving of Loans
by it for ₹ 1,00,000 ≤ Fine ≤ ₹ 25,00,000 or
Purchase of its Or Both
Shares
68 – Buy-back On Company ₹ 1,00,000 ≤ Fine ≤ 3,00,000
On Officer in Default: Imprisonment ≤ 3 years or
₹ 1,00,000 ≤ Fine ≤ ₹ 3,00,000 or
Or Both
71 – Debentures If any default is made in complying with the order of Tribunal
under this Section, punishment shall be as follows:
On Officer in Default: Imprisonment ≤ 3 years or
₹ 2,00,000 ≤ Fine ≤ ₹ 5,00,000 or
Or Both
74 – If a company fails to replay the deposit or part thereof any interest
Replacement of thereon within the time specified above or such further time as
Deposits, etc. allowed by the Tribunal, then the company shall, in addition to the
accepted before payment of the amount of deposit or part thereof and the interest
Commencement due, be punishable with fine:
of this Act On Company ₹ 1,00,00,000 ≤ Fine ≤ 10,00,00,000
On Officer in Default: Imprisonment ≤ 7 years or
₹ 25,00,000 ≤ Fine ≤ ₹ 200,,00,000
or
Or Both

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75 – Damages 1) Where a company fails to repay the deposit or part thereof or

for Fraud any interest thereon Under Section 74 within the specified time,
AND
2) It is proved that the deposits had been accepted with intent to
defraud the depositors or for any fraudulent purpose,
Then every officer of the company who was responsible for the
acceptance of such deposit shall, apart from the punishment
mentioned in Section 74 and Liability Under Section 447, be
personally responsible for any losses or damages that may have
been incurred by the depositors.
76A – Where a company:-
Punishment for 1) Accepts or invites Deposits or allows causes any other person
Deposits to accept or invite on its behalf any deposit in contravention of
the manner or the conditions prescribed Under Section 73 or
76 or Rules made thereunder or
2) Fails to repay the Deposit or part thereof or any interest due
thereon within the time specified Under Section 73 or 76 or
Rules made thereunder or such further time as may be allowed
by the Tribunal Under Section 73, then the punishment shall be
as follows:
On Company Minimum ₹ 1 Crore or twice the
Punishment amount of deposits
accepted by the
Company, whichever is
lower
Maximum ₹ 10 Crores
Punishment
On Officer in Imprisonment ≤ 7 years
Default: AND
Fine ₹ 25 Lakhs ≤ Fine ≤ ₹ 2 Crores
Willful offence by Punishment Under Section 447
officer in default
with the intention
to deceive the
company or its

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shareholders or
depositors or
creditors or tax
authorities
86 – If any company contravenes any provision of this Chapter, the
Punishment for punishment shall be as follows:
Charges On Company ₹ 1,00,000 ≤ Fine ≤ 10,00,000
On Officer in Default: Imprisonment ≤ 6 years or
₹ 25,000 ≤ Fine ≤ ₹ 1,00,000 or
Or Both
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.
88 – Register of The Company and every officer in default shall be punishable as
Members follows:
Normal Punishment ₹ 50,000 ≤ Fine ≤ 3,00,000
Continuing Offence ₹ 1,000 per day
89 – Declaration Section 89 (5) – The concerned person shall be punishable as
in respect of follows:
Beneficial Normal Punishment Fine ≤ 50,000
Interest in any
Continuing Offence ₹ 1,000 per day
share
Section 89 (7) – The Company and every officer in default shall be
punishable as follows:
Normal Punishment ₹ 500 ≤ Fine ≤ 1,000
Continuing Offence ₹ 1,000 per day
90 – Register of Section 90(10) – Penalty for Non-Compliance of the Provision:
Significant Normal Punishment Imprisonment ≤ 1 year or ₹
Beneficial 1,00,000 ≤ Fine ≤ 10,00,000 or Both
Owners in a
Continuing Offence ₹ 1,000 per day
Company
Section 90(11) – Penalty for Non-Compliance of the Provision:
Normal Punishment ₹ 10,00,000 ≤ Fine ≤ 50,00,000

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Continuing Offence ₹ 1,000 per day

Section 90(12) – Penalty for Non-Compliance of the Provision:
If any person willfully furnishes any false or incorrect information
or suppresses any material information of which he is aware in the
Declaration made under this Section, he shall be liable to action
Under Section 447.
91 – Power to The company and every officer in default shall be punishable as
Close Register follows:
of Members Punishment ₹ 5,000 per day during which the register is
kept closed up to a maximum of ₹ 1,00,00.
92 – Annual The Company and every officer in default shall be punishable as
Return follows:-
On Penalty of ₹ 50,000 and in case of continuing
Company failure, with further penalty of ₹ 100 for each
and Officer day during which such failure continues,
in Default: subjects to a maximum of ₹ 5 Lakhs
The CS shall be punishable as follows:
Punishment ₹ 50,000 ≤ Fine ≤ ₹ 1,00,00.
94 – Place of If any default is made in holding a meeting of the company in
Keeping & accordance with Section 96 or Section 97 or Section 98 or in
Inspection of complying with any directions of the Tribunal,
Registers, etc. 1. The company and
2. Every officer of the company who is default shall be punishable
as follows:
Normal Fine Fine ₹ ≤ 1,00,000
Continuing Fine per day Continuing Fine ≤ ₹ 5,000 per
day
102 – Without prejudice to the above provisions regarding
Explanatory reimbursement of secret benefits, if any default is made in
Statement in complying with the provisions of this Section, every Promoter,
Notice Director, Manager or other Key Managerial Personnel who is in
default shall be Higher of –
1. Fine ≤ ₹ 50,000

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2. Fine ≤ 5 times the amount of benefit accruing to the Promoter,

Director, Manager or other Key Managerial Personnel or any of
his relatives.
105 – Proxy If defaults is made in disclosure as above, every officer of the
company who is in default shall be liable to a penalty of ₹ 5,000.
111 – If any default is made in complying with the provisions of this
Circulation of Section, the company and every officer of the company who is in
Members’ default shall be liable to a penalty of ₹ 25,000.
Resolution
117 – If a company fails to file the resolution or the agreement before the
Resolution & expiry of the period specified therein (30 days), the punishment
Agreement to shall be as follows:
be filed On Company Penalty of ₹ 1,00,000 and in case of
continuing failure, with further penalty of ₹
500 for each day after the first during which
failure continues, subject to a maximum of ₹
₹ 5,00,000
On Officer in Penalty of ₹ 50,000 and in case of
Default in continuing failure, with further penalty of ₹
including 500 for each day after the first during which
liquidator such failure continues, subject to a
maximum of ₹ 5,00,000
118 – Minutes If any default is made in complying with the provisions of this
Section in respect of any meeting, punishment shall be as follows:
On Company Fine ≤ 25,000
On Officer in Default: Fine ≤ ₹ 5,000
If a person is found guilty of tampering with the minutes of the
proceedings of meeting, he shall be punishable as follows:
On Officer in Default: Imprisonment ≤ 2 years
AND
₹ 25,000 ≤ Fine ≤ ₹ 1,00,000
119 – (a) If any inspection of minutes is refused, or
Inspection of (b) If any copy of minutes is not furnished within 7 days of demand.
The punishment shall be as follows:

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Minutes-Book On Company Fine ≤ 25,000

of GM On Officer in Default: Fine ≤ ₹ 5,000
120 – If any default is made in compliance with any of the provisions of
Maintenance & this rule, the company and every officer who is in default shall be
Inspection of punishable as follows:
Documents in Normal Fine ₹ 5,000
Electronic
Continuing Offence ₹ 500 per day
Forms
121 – Report on If the company fails to file the report before the expiry of the period
AGM (Listed specified above (30 days), the punishment shall be as follows:
Company) On Penalty of ₹ 1,00,000 and in case of continuing
Company failure, with further penalty of ₹ 500 for each
day after the first during which such failure
continues, subject to a maximum of ₹ 5,00,000
On Officer Penalty of ₹ 1,00,000 and in case of continuing
in Default: failure, with further penalty of ₹ 500 for each
day after the first during which such failure
continues, subject to a maximum of ₹ 1,00,000

124 – Unpaid If a company fails to comply with any of the requirements of this
Dividend Section, the company shall be punishable as follows:
Account On Company ₹ 5,00,000 ≤ Fine ≤ 25,00,000
On Officer in Default: ₹ 1,00,000 ≤ Fine ≤ ₹ 5,00,000
127 – Where a dividend has been declared by a company but has not
Punishment for been paid, or the dividend warrant has not been posted, within
Failure to 30 days from the date of Declaration:
Distribute 1) Every Director of the company shall, if he is knowingly a party
Dividends to the default, be punishable with
a) Simple imprisonment for a term which may extend to 2
years, and
b) A fine of ≥ ₹ 1,000 for every day during which such default
continues, and
2) The company shall be liable to pay simple interest @ 18% per
annum during the period for which such default continues.

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128 – Books of Following persons shall be responsible:-

Accounts and 1) Managing Director,
129 – Financial 2) Whole-time Director in change of Finance,
Statements 3) Chief Financial Officer or
4) Any other person of a company charged by the Board
Punishment for Punishment Under Section 128
non-compliance imprisonment ≤ 1 year or ₹ 50,000 ≤
Fine ≤ ₹ 5 Lakhs or Both
132 – National Notwithstanding anything contained in any other law for the time
Financial being in force, the NFRA shall where professional or other
Reporting misconduct is proved, have the power to make order for –
Authority A) Imposing penalty of –
In case of ₹ 1 Lakh ≤ Fine ≤ 5 times the Fees
Individuals
In case of Firms ₹ 5 Lakhs ≤ Fine ≤ 10 times the
Fees

B) Debarring the member or the firm form:-

(i) Being appointed as an auditor or internal auditor or
undertaking any audit in respect of financial
statements or internal audit of the functions and
activities of any company or body corporate; or
(ii) Performing any valuation as provided Under Section
247 for a minimum period of –
Individuals/Firms 6 months ≤ Ban ≤ 10 years
134 – FS, Board Punishment for non-compliance shall be as follows:-
Report On Company ₹ 50,000 ≤ Fine ≤ 25,00,000
On Officer in Default: Imprisonment ≤ 3 years or ₹ 50,000
≤ Fine ≤ ₹ 5,00,000 or Both
135 – Corporate If a company contravenes the provisions of 135 (5) or (6), the
Social punishment shall be as follows:-
Responsibility On Company ₹ 50,000 ≤ Fine ≤ 25,00,000
(Not yet
On Officer in Default: Imprisonment ≤ 3 years or ₹ 50,000
Notified)
≤ Fine ≤ ₹ 5,00,000 or Both

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136 – Annual Punishment for Non-Compliance shall be as follows:-

Report to On Company Fine ≤ 25,000
Members
On Officer in Default: Fine ≤ ₹ 5,000
137 – Filing FS Punishment for Non-Compliance shall be as follows:-
with ROC On Company Fine of ₹ 1,000 per day but
not exceeding ₹ 10 Lakhs
MD and CRO of the company, if ₹ 1,00,000 and in case of
any and in their absence, any continuing failure, with
other Director who is charged further penalty of ₹ 100 for
by the Board with the each day after the first
responsibility of complying during which such failure
with the provisions of this continues, subject to a
Section, and in the absence of maximum of ₹ 5,00,000
any such Director, all the
Directors of the company
140 – Penalty for non-filing, of Form ADT – 3: If the auditor does not
Registration of comply above, he or it shall be punishable with –
Auditor Minimum Penalty ₹ 50,000 or Auditor’s
Remuneration whichever is less
Continuing Penalty ₹ 500 per day
Maximum Penalty ₹ 5,00,000
140 (5) – Fraud An auditor, whether individual or firm, against whom final order
by Auditor has been passed by the Tribunal Under this Section shall not be
eligible to be appointed as an auditor of ANY company for a period
of 5 years from the date of passing of the order and the auditor shall
also be liable for action Under Section 447.
143(15) – If any auditor, cost accountant or Company Secretary in practice do
Reporting of not comply with the above provisions, he shall be punishable with
Fraud ₹ 1,00,000 ≤ Find ≤ ₹ 25,00,000.
147 (1) and 147 Punishment for contravention of Section 139 to 146 on company
(2) and the officer in default:
On Company ₹ 25,000 ≤ Fine ≤ 5,00,000

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On Officer in Default: Imprisonment ≤ 1 year or ₹ 10,000

≤ Fine ≤ ₹ 1,00,000 or Both
Punishment for contravention of Section 139, 143, 144, 145 on the
AUDITOR:
Contravention of Minimum ₹ 25,000
Section 139, 143, Penalty
144, 145 Maximum ₹ 5 Lakhs or 4 times the
Penalty remuneration of the
Auditor (whichever is
less)
If an auditor has Imprisonment ≤ 1 year AND
contravened such Minimum ₹ 50,000
provision Penalty
knowingly or
Maximum ₹ 25 Lakhs or 8 times
willfully with the
Penalty the remuneration of the
intention to
Auditor (whichever is
deceive the
less)
company or its
shareholders or
creditors or tax
authorities

Section 138 – Bouncing or Dishonur of Cheques

On dishonor of a cheque the drawer is punishable with imprisonment for a term not
exceeding 2 years or with a fine not exceeding twice the amount of a cheque or with both
of the following conditions are fulfilled:
1. If the cheque is returned by the bank unpaid due to insufficiency of funds in the
account of drawer.
2. If the cheque was drawn to discharge a legally enforceable debt or other liability.
3. If the cheque has been presented to the bank within a period of 3 months from the
date on which it is drawn on or within the period of its validity, whichever i.e. earlier.
(i.e. it is not a stale cheque).

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4. If the payee or the holder in due course of the cheque has given a written notice
demanding payment within 30 days from the drawer on receipt of information of
dishonor of cheque from the Bank.
5. If the drawer has failed to make payment within 15 days of the receipt of the said
notice. (Section 138).
6. If the payee or a holder in due course has made a complaint within 30 days of cause
of action arising Under Section 138 (Section 142).
Imprisonment ≤ 2 years OR
Fine ≤ Twice the amount of a cheque OR Both

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