Penalty regime for continuing default replaces fine-based punishment under companies law, with a capped daily escalation. Section 453 of the Companies Act, 2013 is amended to replace the existing fine-based punishment with a civil penalty structure. The substituted provision imposes a penalty of one lakh rupees for the initial failure and a further penalty of five hundred rupees for each day of continuing failure after the first day, subject to an overall maximum of five 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.
Penalty regime for continuing default replaces fine-based punishment under companies law, with a capped daily escalation.
Section 453 of the Companies Act, 2013 is amended to replace the existing fine-based punishment with a civil penalty structure. The substituted provision imposes a penalty of one lakh rupees for the initial failure and a further penalty of five hundred rupees for each day of continuing failure after the first day, subject to an overall maximum of five lakh rupees.
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