Section 446Chapter 28

Application of fines

The court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted.

446A. Factors for determining level of punishment.

The court or the Special Court, while deciding the amount of fine or imprisonment under this Act, shall have due regard to the following factors, namely:—

(a)

size of the company;

(b)

nature of business carried on by the company;

(c)

injury to public interest;

(d)

nature of the default; and

(e)

repetition of the default.

446B. Notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small companysmall company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.

Explanation

For the purposes of this section,—

(a)

“Producer Company” means a company as defined in clause (l) ofsection 378A;

(b)

“start-up company” means a private company incorporated under this Act or under the Companies Act, 1956 and recognised as start-up in accordance with the notification issued by the Central Government in the Department for Promotion of Industry and Internal Trade.

446B. Lesser penalties for One Person Companies or small companies.

Notwithstanding anything contained in this Act, if a One Person Company or a small company f ails to comply with the provisions of sub-section (5) of section 92section 92, sub-section (2) of section 117section 117, sub-section (3) of section 137section 137, such company and officer in default of such company shall be liable to a penalty which shall not be more than one half of the penalty specified in such sections punishable with fine or imprisonment or fine and imprisonment, as the case may be, which shall not be more than one-half of the fine or imprisonment or fine and imprisonment, as the case may be, of the minimum or maximum fine or imprisonment or fine and imprisonment, as the case may be, specified in such sections.

Notes, amendments & references (4)

446A. Factors for determining level of punishment. Inserted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 09.02.2018. To view the notification, Click Here

Substituted vide Companies (Amendment) Act, 2020 dated 28.09.2020 with effect from 22.01.2021. To view the Act, Click Here and to view the commencement notification, Click Here .

446B. Lesser penalties for One Person Companies or small companies. Inserted vide Companies (Amendment) Act, 2017 dated 03.01.2018. To view the notification, Click Here

liable to a penalty which shall not be more than one half of the penalty specified in such sections Substituted vide the Companies (Amendment) Act, 2019 dated 31.07.2019 w.e.f., 02.11.2018. To view the Amendment Act, 2019, Click Here .