Penalty imposition must follow procedural safeguards and be commensurate with breach; minor or procedural errors avoid substantial penalties. Section 126 requires that penalties be imposed only after a show cause notice and hearing, based on the totality of facts, commensurate with the severity of the breach, and with clear specification of the nature of the breach and the legal provision relied upon; it also bars substantial penalties for minor breaches, procedural lapses, and readily rectifiable errors without fraud or gross negligence, while prescribed fixed penalties apply where provided.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Penalty imposition must follow procedural safeguards and be commensurate with breach; minor or procedural errors avoid substantial penalties.
Section 126 requires that penalties be imposed only after a show cause notice and hearing, based on the totality of facts, commensurate with the severity of the breach, and with clear specification of the nature of the breach and the legal provision relied upon; it also bars substantial penalties for minor breaches, procedural lapses, and readily rectifiable errors without fraud or gross negligence, while prescribed fixed penalties apply where provided.
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