Chapter X PENALTIES AND PROCEDURES

(1) Whoever contravenes any provision of this Act or fails to comply with any provision thereof, shall be liable to penalty under this Act and, if, in respect of any offence or contravention no punishment or penalty is specially provided, shall be liable to penalty which may extend to Rs. 10,000, and if the breach is a continuing one, with further penalty which may extend to Rs. 1,000 for every day, after the first day, during which the breach continues. (2) The offences mentioned in column (2) of the First Schedule, shall be punishable to the extent of punishment mentioned in the corresponding column (4) of that Schedule against the offence specified in column (2) of that Schedule. Explanation.—For the purposes of this sub-section, where any offence is attributable to a port under column (2) of the First Schedule, the fine specified for such offence under column (4) thereof, shall be payable by the Authority; or by the concessionaire where such port is operated by the conservator. (3) Whoever contravenes any provision mentioned in column (2) of the Second Schedule, shall be liable to the extent of penalty mentioned in the corresponding column (4) of that Schedule against the contravention specified in column (2) of that Schedule.

1. (1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), the offences under sub-section (3) of section 29, section 30 and section 31, which are punishable to the extent of punishment specified in the First Schedule under sub-section (2) of section 53 of this Act may, before or after the institution of prosecution, be compounded by the conservator on payment for credit to the appropriate Government of such sum and in such manner as may be notified by the appropriate Government: Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offences so compounded: Provided further that in case of second and subsequent offence, the same shall not be compounded.
2. (2) The officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the appropriate Government.
3. (3) Every application for the compounding of an offence shall be made in such form and manner as may be notified by the appropriate Government.
4. (4) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted against the offender in relation to whom the offence is so compounded.
5. (5) Where the compounding of any offence is made after the institution of any prosecution, such composition shall be brought by the officer referred to in sub-section (1), in writing, to the notice of the court in which the prosecution is pending and on such notice for compounding the offence being given, the person against whom the offence is so compounded shall be discharged.
6. (6) Any person who fails to comply with an order of compounding made by the officer referred to in sub-section (1), shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to fine provided for the said offence.
7. (7) No offence punishable under this Act shall be compounded except in accordance with the provisions of this section.]

¹ Ins. by Act 8 of 2026, s. 2 and Sch. (w.e.f. 01.07.2026).

(1) The authority for imposing the penalty under the Second Schedule shall be the conservator. (2) For the purposes of imposition of penalty under this Chapter, where the conservator is a body of persons, the authority for imposition of penalty shall mean, one person appointed from amongst such body of persons, in such manner as may be prescribed by the appropriate Government. (3) The conservator shall, before imposing any penalty specified under the Second Schedule, give the parties an opportunity of being heard. (4) Every order of imposition of penalty under this section shall be in writing. (5) Any contravention of the provisions of this Act for which penalty has been provided may be compounded for the first contravention by such officer as may be notified by the Central Government in this behalf.

No Court inferior to that of a Judicial Magistrate of the first class shall take cognizance of any offence specified under the First Schedule.

Any person who wilfully fails to comply with any order of the Dispute Resolution Committee against which no appeal has been preferred, shall be liable to a penalty which may extend to Rs. 1,00,000, and in addition, penalty which may extend to Rs. 1,000 for every day during which such default continues.

No person shall,—

Any fine imposed by the Magistrate under the First Schedule, or, penalty imposed by the conservator under the Second Schedule, may be recovered by distress and sale of the vessel or part thereof, as may be deemed necessary.

(1) Any dispute as to the sum to be paid as expenses or damages under this Act shall be determined by a Magistrate upon an application made for that purpose by either of the disputing parties. (2) Any sum payable as expenses or damages under this Act which does not exceed Rs. 20,000 may be recovered by the conservator or the Magistrate, as if it were a penalty or fine.

Whenever any penalty, fine, expenses or damages is or are levied under this Act by distress and sale, the cost of distress and sale may be levied in addition to such penalty, fine, expenses or damages, and in the same manner.

If any dispute arises concerning the amount leviable by any distress or arrest under this Act or the costs payable under section 60, the person making the distress or arrest may detain the goods seized or arrested, or the proceeds of the sale thereof, until the amount to be levied has been determined by a Magistrate who, upon an application made for that purpose, may determine the amount and award such costs to be paid by either of the parties to the other of them as the Magistrate may deem reasonable and payment of such costs if not paid on demand, shall be enforced as if they were a fine.

(1) Any person committing any offence under this Act may be tried for such offence in any place in which that person may be found, or before any Magistrate having jurisdiction over any district or place adjoining the port in which the offence takes place, or in any court in which that person may be tried under any other law for time being in force. (2) The Magistrate referred to in sub-section (1) may exercise all the powers of a Magistrate under this Act in the same manner and to the same extent as if the offence had been committed locally within the limits of his jurisdiction, notwithstanding that the offence may not have been committed locally within such limits and in case any such Magistrate exercises the jurisdiction hereby vested in him, the offence shall be deemed, for all purposes, to have been committed locally within the limits of his jurisdiction.

(1) Where any offence under this Act has been committed by a company, every person who, at the time the offence was committed, was directly 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 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) Notwithstanding anything 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 anybody corporate and includes a co-operative society, a firm, a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009) or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm.