Punishment under Companies Act, 2013

Compiled by Yash Soni {9414195921}

SEC PROVISION COMPANY OFFICER-IN-DEFAULT
Fine Penalty Fine Continuous Default Penalty Imprisonment
Ch -1 Appointment & Qualification Of Directors (Sec 149-172)
Failure by Company to furnish DIN to
157 25,000 ≤ x ≤ 1,00,000 - 25,000 ≤ x ≤ 1,00,000 - - -
Registrar.

159 Contravention u/s 152,155,156 - - ≤ 50,000 fine ≤ 500 per day - ≤ 6 months
5000 ≤ x ≤ 25000 per
165(6) Number Of Directorships - - - - -
day after first day
Contravention u/s 166
- - 1,00,000 ≤ x ≤ 5,00,000 - - -
166(7) (Duties Of Director)
Contravention u/s 167
167(2) - - 1,00,000 ≤ x ≤ 5,00,000* - - ≤ 1 year*
(Vacation Of Office of Director)
172 Contravention u/s 149-171 50,000 ≤ x ≤ 5,00,000 - 50,000 ≤ x ≤ 5,00,000 - - -
Ch -2 Meetings of Board(BM) & Its powers (Sec 173-193)
173(4) Failure to give notice of BM - - - - 25,000 -
178(8) Contravention u/s 177-178 1,00,000 ≤ x ≤ 5,00,000 - 25,000 ≤ x ≤ 1,00,000* - - ≤ 1 year*
Contravention u/s 182 Fine ≤ 5 times amt so Fine ≤ 5 times amt so
- - - ≤ 6 months
182(4) (political contribution) contributed. contributed, AND
Contravention u/s 184
- - - -
184(4) (Disclosure of Interst by Director) Fine ≤ 1,00,000* ≤ 1 year*
Contravention u/s 185
185(4) 5,00,000 ≤ x ≤ 25,00,000 - 5,00,000 ≤ x ≤ 25,00,000* - - ≤ 6 months*
(Loan/Guarantee/Security to Director)
Contravention u/s 187
187(4) 25,000 ≤ x ≤ 25,00,000 - 25,000 ≤ x ≤ 1,00,000* - - ≤ 6 months*
(Investment of Co. in own name)
Contravention u/s 188
(Related Party Transactions)
188(5)
(A) In case of Listed Company - - 25,000 ≤ x ≤ 5,00,000* - - ≤ 1 year*
(B) Any other Company - - 25,000 ≤ x ≤ 5,00,000 - - -
 SEC PROVISION COMPANY OFFICER-IN-DEFAULT
Fine Penalty Fine Continuous Default Penalty Imprisonment
Contravention u/s 189
189(6) (Register of Contracts/Arrangements in which - - - - 25,000 -
Directors are Interested)
Contravention u/s 190 - Public Company
190(3) Fine ≤ 25,000 - Fine ≤ 5,000 - - -
(Contracts of Employment with MD/WTD)

Contravention u/s 191

191(5) - - 25,000 ≤ x ≤ 1,00,000 - - -
(Payment to Directors for Loss Of Office)

Ch -3 Appointment & Remuneration of KMP (Sec 196-205)

Contravention u/s 197-Public Company
197(15) - - 1,00,000 ≤ x ≤ 5,00,000 - - -
(Maximum managerial remuneration)
Contravention u/s 203
203(5) 1,00,000 ≤ x ≤ 5,00,000 - Fine ≤ 50,000 AND 1000 per day - -
(Appointment of KMP)
Contravention u/s 204 1,00,000 ≤ x ≤ 5,00,000
1,00,000 ≤ x ≤ 5,00,000 - - - -
204(4) (Secretarial Audit) {Includes C.S.}
Ch -4 Inspection, Inquiry & Investigation (Sec 206-229)
Contravention u/s 206 (RoC's
206(7) power to call for Info,inspect books & conduct Fine ≤ 1,00,000 - Fine ≤ 1,00,000 fine ≤ 500 per day - -
inquiries etc.)
Contravention u/s 207 25,000 ≤ x ≤ 1,00,000
207(4) - - - - ≤ 1 year
(Conduct of Inspection & inquiry) AND
Contravention u/s 213 Sec 447
213 - - - - -
(Investigation into Affairs in other cases) (Refer Notes Below)
Contravention u/s 217 25,000 ≤ x ≤ 1,00,000
- - - - ≤ 1 year
217(6) (Procedure, Powers etc. of Inspector) AND
Refusal by any person w.r.t. notes on 25,000 ≤ x ≤ 1,00,000 2,000 per day of
- - - ≤ 6 months
217(7)(8) examination AND refusal AND
 SEC PROVISION COMPANY OFFICER-IN-DEFAULT
Fine Penalty Fine Continuous Default Penalty Imprisonment
Contravention u/s 221
- - - ≤ 3 yrs*
(Freezing of Assets of Co. on Inq & Invest.)
221(2) 1,00,000 ≤ x ≤ 25,00,000 50,000 ≤ x ≤ 5,00,000*
Contravention u/s 222
- - - ≤ 6 months*
222(2) (Restrictions On Securities) 1,00,000 ≤ x ≤ 25,00,000 25,000 ≤ x ≤ 5,00,000*

Ch -5 Compromise, Arrangements & Amalgamations (Sec 229-240)

Contravention u/s 232
- - - ≤ 1 year*
232(8) (Merger & Amalgamation of Companies) 1,00,000 ≤ x ≤ 25,00,000 1,00,000 ≤ x ≤ 3,00,000*
Contravention u/s 238
- - - - -
238 (Reg. of Offer Of Schemes involving ToS) 25,000 ≤ x ≤ 5,00,000

Ch -6 Prevention Of Oppression & Mismanagement (Sec 241-246)

Contravention u/s 242
242(8) (Alteration in MoA & AoA inconsistent with 1,00,000 ≤ x ≤ 25,00,000 - 25,000 ≤ x ≤ 1,00,000* - - ≤ 6 months*
Order u/s 242(5))
Contravention u/s 243
243(2) (Consequence of termination or modification - Fine ≤ 5,00,000 - - ≤ 6 months*
of certain arrangements)
Contravention u/s 243
25,000 ≤ x ≤ 1,00,000
245(7) (Failure to comply with order of Tribunal 5,00,000 ≤ x ≤ 25,00,000 - - - ≤ 3 yrs
AND
relating to Class Action Suit)

Ch -7 Registered Valuers (Sec 247 & Rules thereon)

Contravention u/s 247
25,000 ≤ x ≤ 1,00,000* 1,00,000 ≤ x ≤ 5,00,000* ≤ 1 year
247(3) (Contravention of provisions by valuer with - - -
(On Valuer Company) (On Valuer himself) (Valuer himself)
the intetion to defraud Co. or its members)
 SEC PROVISION COMPANY OFFICER-IN-DEFAULT

Fine Penalty Fine Continuous Default Penalty Imprisonment

Ch -8 Removal Of Names of companies from the Register Of Companies(RoC) (Sec 247-252)
249(2) Contravention u/s 248(2) Fine ≤ 1,00,000 - - - - -
Contravention u/s 248(2) Sec 447
- - - - -
251(1) (Application made with fraudulent intent) (Refer Notes Below)
Ch -10 Winding Up (Sec 270-365)
Contravention u/s 274
274(4) - - 25,000 ≤ x ≤ 5,00,000* - - ≤ 6 months*
(Directions for filing Statement of Affairs)
Non-Cooperance by Promoters, Directors with
- - Fine ≤ 5,000 - - ≤ 6 months*
284(2) Company Liquidator
Failure by Company Liquidator in forwarding a 5,000 per day of
- - - - -
302(4) copy of order within 30 days. default
Offences by Officers of Companies in 1,00,000 ≤ x ≤ 3,00,000
336(1) - - - - 3 yrs ≤ x ≤ 5yrs
Liquidation AND
Punisment for pledging, Pawning, or disposing
3,00,000 ≤ x ≤ 5,00,000
336(2) of any property in circumstances metioned - - - - 3 yrs ≤ x ≤ 5yrs
AND
u/s 336(1).
Punishment on person stating himself to be a
348(4)(5) - - 1000*(Sec 182-IPC) - - ≤ 6 months*
creditor / creditor fraudulently
5,000 per day of
348(6)(7) Punishment on Liquidator - - - x ≤ 1,00,000* ≤ 6 months*
default
Ch -13 Companies Incorporated Outside India (CIOI) (Sec 379-393)
1,00,000 ≤ x ≤ 3,00,000
Contravention of provisions of this chapter by AND
392 - 25,000 ≤ x ≤ 5,00,000* - - ≤ 6 months*
Foreign Company 50,000 per day for
continuing offence
Ch -14 Government Companies (Sec 394-395)
SEC PROVISION COMPANY OFFICER-IN-DEFAULT
Fine Penalty Fine Continuous Default Penalty Imprisonment

Ch -17 Nidhis
Fine ≤ 5,000
500 per day after the first 500 per day after the
Penalty for non-compliance with Rules - Fine ≤ 5,000 - -
day for continuing first day
Offence.

Ch -18 NCLT & NCLAT (Sec 407-434)

Ch -19 Special Courts (Sec 435-446B)

Lesser Penalties for OPC & Small Shall not be more than 1/2 of the Fine or Imprisonment, or Fine And Imprisonment, as the case may be as
Companies u/s:- specified in those sections.
92:-Annual Return 50,000 ≤ x ≤ 5,00,000 - 50,000 ≤ x ≤ 5,00,000* - - ≤ 6 months*
1,00,000 ≤ x ≤ 25,00,000
446B 500 per day after the
117:- Filing MGT-14 500 per day after the first - 50,000 ≤ x ≤ 5,00,000* - -
first day
day
1000 per day upto 1 Lac - ≤ 6 months*
137:- Delay in filing FS with Registrar 1,00,000 ≤ x ≤ 5,00,000*

Ch -20 Miscellaneous (Sec 447,450,455)

Fine ≤ 10,000
Punishment where no specific penalty or 1000 per day after
450 - Fine ≤ 10,000 - -
punishment is provided. 1000 per day after the the first day
first day
 Sec 447
Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is
found to be guilty of fraud involving an amount of at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower
shall be punishable as follows:

Punishment for Fraud u/s 447

6 months ≤ Imprisonment ≤ 10 yrs
AND
Mega 447 Amount Involved in the Fraud ≤ Penalty ≤ 3 Times Amount Involved in the Fraud where the fraud
involves public interest, the term of imprisonment shall not be less than 3 years

where the fraud involves, 10 lacs or 1% of the Turnover of the Company, Whichever is lower
and does not involve public interest any person guilty of
such fraud shall be punishable with Imprisonment ≤ 5 Years OR
Mini 447 with fine 20 Lacs OR "BOTH"

Explanation.—For the purposes of this section—

(i) “fraud” in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any
person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or
its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;
(ii) “wrongful gain” means the gain by unlawful means of property to which the person gaining is not legally entitled;
(iii) “wrongful loss” means the loss by unlawful means of property to which the person losing is legally entitled.
NOTES:-
1. Chapter 9, 11, 12, 15, 16 no more a part of the syllabus.
2. "Officer in Default" includes any Director or employee of the Company as stated under relevant Sections.
3. *- stands for "OR BOTH" Thus Compounding u/s 441 (Though now not in syllabus) is possible.
4. U/s 185(4), *- stands for Imprisonment or Fine in case of Director or the beneficiary & not every Officer.