Chapter IX PENAL& AND PROC~DURB

Whoever contravenes the provisions of this Act or of the rule or bye-law or fails to comply with any order issued under this Act or the rule or bye-law, shall, on conviction, be punished with fine which may extend to one thousand rupees, and with further fine which may extend to one hundred rupees for every day on which such contravention or failure continues after the first conviction.

Cognizance of offence

Offences by companies

1. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation — For the purpose of this section —
   • (a) "company" means a body corporate and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm means a partner in the firm.

1. (1) Any officer or servant of the Board, or any police officer, may arrest any person who commits any offence against this Act or any rule or regulation or bye-law made thereunder, if the name and address of such person be unknown to such officer or servant and he, on demand, declines to give his name and address or gives a name and address which such officer or servant has reason to believe to be false.
2. (2) Such person shall be detained by such officer or servant and shall, without unnecessary delay, be taken before the nearest Magistrate.
3. (3) No person so arrested shall be detained in custody after his true name and address are ascertained or, without the order of a Magistrate, for a longer period than twenty-four hours from the time of his arrest exclusive of the time necessary for the journey from the place of arrest to the Magistrate.

1. (1) The Board or any officer authorised by the Board in this behalf may, either before or after the institution of the proceedings, compound any offence made punishable by or under this Act: Provided that, the offence shall not be compounded for a sum exceeding two thousand rupees.
2. (2) Where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded.