Insertion of new sections after section 16

After section 16 of the principal Act, the following sections shall be inserted, namely:— “16A. Giving opportunity before imposing penalty.—Notwithstanding anything contained in this Act, for imposing penalty under section 16, the Government may, by notification in the Gazette, designate an officer equivalent to the rank of the Joint Director in the Industries/Coir Department, who shall before taking steps to impose penalty, give an opportunity to the dealer to comply with the provisions of the said section by written direction laying down a time period not exceeding ninety days for such compliance and if the dealer complies with the above direction within the said period, then, no such proceedings shall be initiated against the dealer. 16B. Punishment for default in payment of penalty.—

1. (1) Whoever fails to pay the penalty imposed under section 16, within a period of ninety days from the date of receipt of the copy of the order, shall be punishable with imprisonment for a term which may extend to six months and with fine of double the amount imposed as penalty.
2. (2) No Court inferior to that of a Judicial Magistrate of the First Class shall try any offence punishable under sub-section (1).
3. (3) No Court shall take cognizance of any offence punishable under sub-section (1), except on the basis of the previous sanction of the officer authorised to impose the penalty and on his written report. 16C. Power of Officers to impose penalty.—
4. (1) For the purpose of imposing penalty under section 16 of this Act, an officer designated by the Government under section 16A, after holding an enquiry in the manner as may be prescribed, shall impose a penalty as provided under this Act.
5. (2) While holding enquiry under sub-section (1), the officer shall have the power to summon and enforce attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of the officer, may be useful or relevant to the subject matter of the enquiry and on such enquiry, if he is satisfied that the person has committed the offence, he shall impose a penalty as provided under this Act.
6. (3) Any person aggrieved by an order issued by the officer under sub-section (2), may prefer an appeal before the appellate authority in such form and in such manner with such fee, as may be prescribed, within thirty days from the date on which such order is communicated to him: Provided that the Appellate Authority may entertain the appeal after the expiry of the said period of thirty days, if such authority is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.
7. (4) The appellate authority may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against within a period of sixty days from the date of receipt of the appeal.
8. (5) The amount of penalty received shall be credited to the Consolidated Fund of the State. 16D. Compounding of Offences.—
9. (1) For compounding the offences under section 16B, the accused, either before or after the institution of prosecution, may submit an application before the Compounding Officer equivalent to the rank of Joint Director in the Industries/Coir Department, designated by the Government by notification in the Gazette, and on payment of seventy five per cent of the amount of fine provided under the said section, the Compounding Officer may compound the offence.
10. (2) Every application for compounding the offences shall be made in such form and in such manner as may be prescribed.
11. (3) Where the compounding of the offences is made before the institution of prosecution, in such situations, no prosecution shall be instituted against the accused with respect to the said offence.
12. (4) Where the compounding of the offences is made after institution of the prosecution, such compounding shall be made with the permission of the court and after such compounding the accused shall be acquitted from the said offence.
13. (5) The amount received on compounding of the offences shall be credited to the Consolidated Fund of the State.”