Penalty for contravention of prohibited company loans: fines or imprisonment subject to repayment limiting or eliminating imprisonment. Section 371 imposes penalties for persons party to contraventions concerning company loans, guarantees or securities: punishable by a fine up to fifty thousand rupees or simple imprisonment up to six months, with a repayment proviso that bars imprisonment if the loan is repaid in full and proportionately reduces imprisonment where partially repaid. Knowingly participating persons are jointly and severally liable to the lending company for repayment or for sums paid under any guarantee or security.