Contravention penalties under the Companies Act shift to a structured penalty regime with continuing daily liability for companies and officers. Section 392 is amended to replace the existing fine-based punishment framework with a penalty structure for contravention. The company is liable to a penalty of one lakh rupees, with an additional daily penalty of five hundred rupees for continuing contravention after the first day, subject to a maximum of five lakh rupees. Every officer of the company in default is liable to a penalty of twenty-five thousand rupees and a continuing daily penalty of two hundred rupees, subject to a maximum of two lakh rupees.
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.
Contravention penalties under the Companies Act shift to a structured penalty regime with continuing daily liability for companies and officers.
Section 392 is amended to replace the existing fine-based punishment framework with a penalty structure for contravention. The company is liable to a penalty of one lakh rupees, with an additional daily penalty of five hundred rupees for continuing contravention after the first day, subject to a maximum of five lakh rupees. Every officer of the company in default is liable to a penalty of twenty-five thousand rupees and a continuing daily penalty of two hundred rupees, subject to a maximum of two lakh rupees.
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