Chapter CA Inter Penalties for Nov 2021
CA Inter LAW
Penalties Applicable for
NOV 2021
Sr. Section Old Penalty
No
1. 8 If Company makes any default in
complying any provisions of the section
then the company will be liable to:
a) Fine of minimum 10 lakhs up to Rs. 1
crores, and
b) Every director and any other officer
who is found guilty for such default
will be punishable with:
i. Imprisonment to the maximum of
3 years, or
ii. Fine of Rs. 25000 to 25 lakhs or
with Both.
2. 16 If a company makes default in
complying with any direction given
under sub-section (1), the company
shall be punishable with fine of one
thousand rupees for every day during
which the default continues and every
officer who is in default shall be
punishable with fine which shall not be
less than five thousand rupees but
which may extend to one lakh rupees.
3. 26 If a prospectus is issued in
contravention of the provisions of
section 26,
Company shall be punishable with
imprisonment for a term which may
extend to three years or with fine which
shall not be less than fifty thousand
rupees but which may extend to three
lakh rupees, or with both.
4. 40 Penalty for default will be as under-
For Company-Rs.5,00,000 ≤ Fine ≤
Rs.50,00,000
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1.1
New Penalty
If Company makes any default in
complying any provisions of the section
then the company will be liable to:
a) Fine of minimum 10 lakhs up to Rs. 1
crores, and
b) Every director and any other officer
who is found guilty for such default will
be punishable with:
Fine of Rs. 25000 to 25 lakhs
If a company is in default in complying
with any direction given under sub-section
(1), the Central Government shall allot a
new name to the company in such manner
as may be prescribed and the Registrar
shall enter the new name in the register of
companies in place of the old name and
issue a fresh certificate of incorporation
with the new name, which the company
shall use thereafter:
Provided that nothing in this sub-section
shall prevent a company from
subsequently changing its name in
accordance with the provisions of section
13.
If a prospectus is issued in contravention
of the provisions of section 26,
Company shall be punishable with fine
fifty thousand rupees to three lakh.
Every person who is knowingly a party to
the issue of such prospectus shall be
punishable with fine which shall not be
less than fifty thousand rupees but which
may extend to three lakh rupees.
Penalty for default will be as under-
For Company-Rs.5,00,000 ≤ Fine ≤
Rs.50,00,000
 Chapter CA Inter Penalties for Nov 2021

1.2 For every officer in default – For every officer in default –

With imprisonment for a term which
may extend to one year or
Rs.50,000 ≤ Fine ≤ Rs.3,00,000 or with
both.
5. 56 where any default is made in complying
with the provisions of sub-sections (1)
to (5), the punishment shall be as
under:
a) company: It shall be punishable with
fine varying from 25,000 rupees to 5
lakh rupees
every officer of the company who is in
default: He shall be punishable with
minimum fine of 10,000 rupees and
maximum of one lakh rupees.
6. 64 Where any company fails to comply
with the provisions of sub-section (1),
such company and every officer who is
in default shall be liable to a penalty
of Rs.1000 for each day during which
such default continues, or five lakh
rupees whichever is less.
7. 68 If a company makes any default in
complying with the provisions of this
section or with SEBI regulations,
penalty shall be as under-
For Company-
Rs.1,00,000 ≤ Fine ≤ Rs.3,00,000
For Every officer in default-
With Imprisonment for term which
extends to 3 years or
Rs.1,00,000 ≤ Fine ≤ Rs.3,00,000
8. 86 if a company contravenes any of the
provisions relating to the registration of
charges or modification or satisfaction
of charges, the punishment shall be as
under:
a) the company shall be punishable
with minimum fine of ` one lakh and
maximum fine of ` ten lakhs; and
every defaulting officer of the company
shall be punishable with imprisonment
maximum up to six months or with
minimum fine of ` twenty-five thousand
and maximum of ` one lakh, or with
both.
9. 88 Section 88(5) of the Act provides that
Rs.50,000 ≤ Fine ≤ Rs.3,00,000.
Where any default is made in complying
with the provisions of sub-sections (1) to
(5), the company and every officer of the
company who is in default shall be liable
to a penalty of fifty thousand rupees.".
Where any company fails to comply with
the provisions of sub-section (1), such
company and every officer who is in
default shall be liable to a penalty
of Rs.500 for each day during which such
default continues, subject to a maximum
of five lakh rupees in case of a company
and one lakh rupees in case of an officer
who is in default.
If a company makes any default in
complying with the provisions of this
section or with SEBI regulations, penalty
shall be as under-
For Company-
Rs.1,00,000 ≤ Fine ≤ Rs.3,00,000
For Every officer in default-
Rs.1,00,000 ≤ Fine ≤ Rs.3,00,000
If any company is in default in complying
with any of the provisions of this Chapter,
the company shall be liable to a penalty of
five lakh rupees and every officer of the
company who is in default shall be liable
to a penalty of fifty thousand rupees.".
Section 88(5) If a company does not

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 Chapter CA Inter Penalties for Nov 2021
company and every officer of the
company who is in default shall be
punishable with fine which shall not be
less than ` 50,000 but which may extend
to ` 3,00,000 and where the failure is a
continuing one, with a further fine
which may extend to ` 1,000 per day.
10. 89(5) If any person fails to make a declaration
as required under section 89, without
any reasonable cause, he shall be
punishable with fine which may extend
to fifty thousand rupees and where the
failure is a continuing one, with a
further fine which may extend to one
thousand rupees for every day after the
first during which the failure continues.
11. 89(7) If a company, required to file a return
u/s 89(6), fails to do so within 30 days
of receipt of declaration by it, the
company and every officer of the
company who is in default shall be
punishable with fine which shall not be
less than five hundred rupees but which
may extend to one thousand rupees
and where the failure is a continuing
one, with a further fine which may
extend to one thousand rupees for
every day after the first during which
the failure continues.
12. 90(10) If any person fails to make a declaration
as required under sub-section (1), he
shall be liable for :
a) Imprisonment for a term which may
extend to one year or
b) With fine which shall not be less than
one lakh rupees but which may
extend to ten lakh rupees or
c) With both
Where the failure is continuous, with a
further fine which may extend to one
thousand rupees for every day after the
first day during which the failure
continues.
13. 90(11) If a company, required to maintain
register under sub-section (2) and file
the information under sub-section (4) or
required to take necessary steps
under sub-section (4A) fails to do so or
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maintain a register of members or
debenture-holders or other security 1.3
holders or fails to maintain them in
accordance with the provisions of sub-
section (1) or sub-section (2), the company
shall be liable to a penalty of three lakh
rupees and every officer of the company
who is in default shall be liable to a
penalty of fifty thousand rupees.".
If any person fails to make a declaration as
required under sub-section (1) or sub-
section (2) or sub-section (3), he shall be
liable to a penalty of fifty thousand rupees
and in case of continuing failure, with a
further penalty of two hundred rupees for
each day after the first during which such
failure continues, subject to a maximum of
five lakh rupees.";
If a company, required to file a return
under sub-section (6), fails to do so before
the expiry of the time specified therein,
the company and every officer of the
company who is in default shall be liable
to a penalty of one thousand rupees for
each day during which such failure
continues, subject to a maximum of five
lakh rupees in the case of a company and
two lakh rupees in case of an officer who
is in default.";
If any person fails to make a declaration as
required under sub-section (1), he shall be
liable to a penalty of fifty thousand rupees
and in case of continuing failure, with a
further penalty of one thousand rupees for
each day after the first during which such
failure continues, subject to a maximum of
two lakh rupees.";
If a company, required to maintain
register under sub-section (2) and file the
information under sub-section (4) or
required to take necessary steps under
sub-section (4A), fails to do so or denies
 Chapter CA Inter Penalties for Nov 2021
denies inspection as provided therein,
1.4 the company and every officer of the
company who is in default shall be
punishable with fine which shall not be
less than ten lakh rupees but which may
extend to fifty lakh rupees and where
the failure is a continuing one, with a
further fine which may extend to one
thousand rupees for every day after the
first during which the failure continues.
14. 92(5) Where company fails to file even within
270 days from the expiry of 60days time
limit (i.e., fails to file within 330 days of
date of holding AGM/date on which
AGM should have been held),penalty
shall be as under-
such company and its every officer who
is in default shall be liable to a penalty
of fifty thousand rupees and in case of
continuing failure, with further penalty
of one hundred rupees for each day
during which such failure continues,
subject to a maximum of five lakh
rupees.
15. 92(6) If a company secretary in practice,
certifies the annual return which is not
in conformity with the requirements of
this section or the applicable rules, he
shall be punishable with fine which
shall not be less than ` 50,000 but which
may extend to ` 5,00,000
16. 105(5) When, for the purpose of meeting,
invitations to appoint as proxy are sent
at the company`s expense to any
member entitled to have a notice of the
meeting,
Every officer of the company who
knowingly issues the invitations as
aforesaid or willfully authorises or
permits their issue shall be punishable
with fine which may extend to
Rs.100,000.
17. 117 If filed after 30 days but within 300 If filed after 30 days but within 300 days,
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inspection as provided therein then :
a) The company shall be liable to a penalty
of one lakh rupees and in case of
continuing failure, with a further
penalty of five hundred rupees for each
day, after the first during which such
failure continues, subject to a maximum
of five lakh rupees and
every officer of the company who is in
default shall be liable to a penalty of
twenty-five thousand rupees and in case
of continuing failure, with a further
penalty of two hundred rupees for each
day, after the first during which such
failure continues, subject to a maximum of
one lakh rupees.".
Where company fails to file even within
270days from the expiry of 60days time
limit (i.e., fails to file within 330 days of
date of holding AGM/date on which AGM
should have been held),penalty shall be as
under-
such company and its every officer who is
in default shall be liable to a penalty of ten
thousand rupees and in case of continuing
failure, with further penalty of one
hundred rupees for each day during which
such failure continues, subject to a
maximum of two lakh rupees in case of a
company and fifty thousand rupees in case
of an officer who is in default.
When a Company Secretary in practice
certifies an Annual Return which is not in
conformity with the requirements of this
section or the applicable rules, he shall be
liable to a penalty of two lakh rupees
punishable.
When, for the purpose of meeting,
invitations to appoint as proxy are sent at
the company`s expense to any member
entitled to have a notice of the meeting,
Then every officer of the company who
knowingly issues the invitations or permits
such issue shall be punishable with fine up
to Rs.50,000.
 Chapter CA Inter Penalties for Nov 2021
days, additional filing fee as prescribed
shall be payable as per sec 403.
Penalty for filing beyond 300 days -For
the Company-
penalty of One lakh rupees and in case
of continuing failure, with further
penalty of five hundred rupees for each
day after the first during which such
failure continues, subject to a maximum
of twenty five lakhs rupees.
For every officer in default(including
liquidator if any)- penalty of fifty
thousand rupees and in case of
continuing failure, with further penalty
of five hundred rupees for each day
after the first during which such failure
continues, subject to a maximum of five
lakh rupees
18. 124 If a company fails to comply with any of
the requirements relating to unpaid
dividend account, it shall be punishable
with minimum fine of rupees five lakhs
which may extend to rupees twenty-
five lakhs.
Further, every officer of the company
who is in default shall be punishable
with minimum fine of rupees one lakh
which may extend to rupees five lakhs.
19. 128 Normally the duty of maintenance of
books of accounts is of the MD / WTD /
BOD. But if they feel so they can
transfer the duty to CFO / any other
qualified person.
In case of contravention the officer in
default will be as follows:
a. MD,WTDin charge of finance/
BOD (if qualified person or CFO
is not appointed).
b. CFO / Qualified person
appointed. (in case if the CFO /
Qualified Person is appointed for
maintenance of books.)
The officer in default in above case will
be liable to the following penalty of
with imprisonment for a term which
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additional filing fee as prescribed shall be
payable as per sec 403. 1.5
Penalty for filing beyond 300 days -For the
Company-
penalty of ten thousand rupees and in
case of continuing failure, with further
penalty of one hundred rupees for each
day after the first during which such
failure continues, subject to a maximum of
two lakh rupees.
For every officer in default(including
liquidator if any)- penalty of ten thousand
rupees and in case of continuing failure,
with further penalty of one hundred
rupees for each day after the first during
which such failure continues, subject to a
maximum of fifty thousand rupees
If a company fails to comply with any of
the requirements of this section, such
company shall be liable to a penalty of one
lakh rupees and in case of continuing
failure, with a further penalty of five
hundred rupees for each day after the first
during which such failure continues,
subject to a maximum of ten lakh rupees
and every officer of the company who is in
default shall be liable to a penalty of
twenty-five thousand rupees and in case
of continuing failure, with a further
penalty of one hundred rupees for each
day after the first during which such
failure continues, subject to a maximum of
two lakh rupees.".
Normally the duty of maintenance of
books of accounts is of the MD / WTD /
BOD. But if they feel so they can transfer
the duty to CFO / any other qualified
person.
In case of contravention the officer in
default will be as follows:
a. MD,WTDin charge of finance/ BOD
(if qualified person or CFO is not
appointed).
b. CFO / Qualified person appointed.
(in case if the CFO / Qualified
Person is appointed for
maintenance of books.)
The officer in default in above case will be
liable to the following penalty of
with imprisonment for a term which may
 Chapter CA Inter Penalties for Nov 2021
may extend to one year or
1.6 Fine of Rs. 50,000 – Rs. 5,00,000
20. 134 If a company contravenes the
provisions of this section, the company
shall be punishable with fine which
shall not be less than fifty thousand
rupees but which may extend to
twenty-five lakh rupees and every
officer of the company who is in default
shall be punishable with imprisonment
for a term which may extend to three
years or with fine which shall not be
less than fifty thousand rupees but
which may extend to five lakh rupees,
or with both
21. 135(7) If a company contravenes the
provisions of sub-section (5) or sub-
section (6), the company shall be
punishable with fine which shall not be
less than fifty thousand rupees but
which may extend to twenty-five lakh
rupees and every officer of such
company who is in default shall be
punishable with imprisonment for a
term which may extend to three years
or with fine which shall not be less than
fifty thousand rupees but which may
extend to five lakh rupees, or with
both.
22. 140 If the auditor fails to file form ADT-3
statement of resignation as stated
above the auditor will be liable for the
penalty of Rs. 50,000 or an amount
equal to the remuneration of the
auditor, whichever is less. And in case
of continuing failure, with further
penalty of five hundred rupees for each
day after the first during which such
failure continues, subject to a maximum
of Five lakh rupees.
23. 143(15) If any auditor, cost auditor or the
Secretarial auditor, as mentioned
above, do not comply with the
provisions of this section (i.e. section
143(12), he shall be punishable with
fine which shall not be less than `1 lac
but which may extend to `25 lakhs.
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extend to one year or
Fine of Rs. 50,000 – Rs. 5,00,000
[or with both]
If a company is in default in complying
with the provisions of this section, the
company shall be liable to a penalty of
three lakh rupees and every officer of
the company who is in default shall be
liable to a penalty of fifty thousand
rupees.
If a company is in default in complying
with the provisions of sub-section (5) or
sub-section (6), the company shall be
liable to a penalty of twice the amount
required to be transferred by the company
to the Fund specified in Schedule VII or the
Unspent Corporate Social Responsibility
Account, as the case may be, or one crore
rupees, whichever is less, and every officer
of the company who is in default shall be
liable to a penalty of one-tenth of the
amount required to be transferred by the
company to such Fund specified in
Schedule VII, or the Unspent Corporate
Social Responsibility Account, as the case
may be, or two lakh rupees, whichever is
less.
If the auditor fails to file form ADT-3
statement of resignation as stated above
the auditor will be liable for the penalty of
Rs. 50,000 or an amount equal to the
remuneration of the auditor, whichever is
less. And in case of continuing failure, with
further penalty of five hundred rupees for
each day after the first during which such
failure continues, subject to a maximum of
two lakh rupees.
If any auditor, cost accountant or company
secretary in practice do not comply with
the provisions of sub-section (12), he shall
a) in case of a listed company, be liable to
a penalty of five lakh rupees; and
in case of any other company, be liable to
a penalty of one lakh rupees.
 Chapter CA Inter Penalties for Nov 2021
24. 147(1) If any provision of section 139 – 146 is
contravened the consequences will be
as follows.
a) The company will be punishable for
the fine of Rs.25000 to Rs.5 lakhs;
and
b) Every officer in default will be liable-
i. with imprisonment for a term
which may extend to one year or
ii. For fine which shall not be less
than ten thousand rupees but
which may extend to one lakh
rupees
or with both
25. 148(8) If any provision of this section is
contravened the consequences will be
as follows.
a) The company will be punishable for
the fine of Rs.25000 to Rs.5 lakhs;
and
b) Every officer in default will be liable-
i. with imprisonment for a term
which may extend to one year or
ii. For fine which shall not be less
than ten thousand rupees but
which may extend to one lakh
rupees
or with both
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If any provision of section 139 – 146 is
contravened the consequences will be as 1.7
follows.
a) The company will be punishable for
the fine of Rs.25000 to Rs.5 lakhs; and
b) Every officer in default will be liable-
i. with imprisonment for a term which
may extend to one year or
ii. For fine which shall not be less than
ten thousand rupees but which may
extend to one lakh rupees
or with both
If any provision of section this is
contravened the consequences will be as
follows.
a) The company will be punishable for
the fine of Rs.25000 to Rs.5 lakhs; and
b) Every officer in default will be liable-
i. with imprisonment for a term
which may extend to one year or
ii. For fine which shall not be less than
ten thousand rupees but which may
extend to one lakh rupees
or with both