Chapter IX OFFENCES, PENALTIES AND COMPENSATION

(1) Whoever installs or uses any prohibited hazardous material in a ship in contravention of the provisions of this Act or rules or regulations made thereunder shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 5,00,000 or with both. (3) Whoever contravenes the provisions of sub-section (1) of section 17 shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to Rs. 10,00,000 or with both. (4) Whoever contravenes the provisions of sub-section (1) of section 18, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to Rs. 10,00,000 or with both. (5) Whoever fails to ensure safe and environmentally sound removal and management of any hazardous material from a ship in accordance with the regulations shall be punishable with an imprisonment for a term which may extend to six months or with fine which may extend to Rs. 5,00,000 or with both. (6) Whoever fails to respond within twenty-four hours of issuance of third notice for taking remedial action for oil spill under sub-section (2) of section 22, shall be punishable with imprisonment which may extend to three months or with fine which may extend to Rs. 10,00,000 or with both.

(1) Whoever contravenes the provisions of section 12 shall be liable to penalty which may extend to Rs. 10,00,000. (2) Whoever fails to respond to the notice issued for taking remedial action for oil spill under sub-section (2) of section 22 shall be liable to a penalty, which may extend to–– (i) Rs. 5,00,000, in case of no response within twelve hours of issuance of first notice; and (ii) Rs. 10,00,000, in case of no response within twenty-four hours of issuance of second notice. (3) Whoever contravenes any of the provisions of this Act or any rules or regulations made thereunder, for which no specific punishment or penalty has been provided in this Act, shall be liable to penalty which may extend to Rs. 2,00,000.

(1) For the purpose of adjudicating penalties under section 32, the Central Government shall appoint an officer not below the rank of Deputy Secretary to the Government of India as an adjudicating officer for holding an inquiry and imposing penalties in such manner as may be prescribed: Provided that the Central Government may appoint as many adjudicating officers as may be required: Provided further that no such penalty shall be imposed without giving the person concerned a reasonable opportunity of being heard. (2) Whoever is aggrieved by the order of the adjudicating officer under sub-section (1), may within thirty days from the date of receipt of such order, prefer an appeal to an officer at least one rank higher than the adjudicating officer who shall be appointed by the Central Government as an appellate authority, in such form and manner as may be prescribed. (3) The appellate authority may admit an appeal after the expiry of the said period of thirty days, if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within that period. (4) The appellate authority may, after giving the parties to the appeal an opportunity of being heard, pass such an order as he may deem fit. (5) An appeal under sub-section (2) shall be disposed of within sixty days from the date of filing. (6) If penalty imposed by the adjudicating officer under sub-section (1) or by an order of the appellate authority under sub-section (4), as the case may be, is not deposited, the amount shall be recovered as an arrear of land revenue.

(1) If any ship, after detention or after service of any notice or order for such detention, proceeds to sea before it is released by the National Authority, the owner or master of the ship shall be guilty of an offence under this Act. (2) Whoever restrains or detains or forcibly takes to sea, any person authorised under this Act to detain or survey the ship, on the execution of his duty, the owner, master or agent of such ship shall each be liable to pay all expenses of, and incidental to, such person being so taken to sea and shall also be guilty of an offence under this Act.

(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 had exercised all due diligence to prevent the commission of such offence. (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 purposes of this section,— (a) "company" means anybody corporate and includes a co-operative society, firm or other association of individuals; and (b) "director" means a whole time director in the company and in relation to a firm means a partner in the firm.

No court shall take cognizance of an offence under this Act except on a complaint made by— (a) the Central Government; (b) the National Authority or an officer authorised in this behalf; or (c) the Competent Authority or an officer authorised in this behalf.

When any owner or master or agent is convicted of an offence under sub-section (2) of section 33, the amount payable on account of expenses by such owner or master or agent shall be determined and recovered in such manner as may be prescribed.

Any person committing any offence under this Act or any rules made thereunder, may be tried for such offence in any place in which he may be found, or in any Court which the Central Government may, by notification, direct in this behalf, or in any Court in which he might be tried under any other law for the time being in force.

(1) Where a ship is unduly detained or delayed as a result of an inspection or investigation without any reasonable cause, then, such ship shall be entitled to compensation for any loss or damage suffered thereby. (2) The rate of compensation referred to in sub-section (1), the method of calculation and the manner of payment of such compensation shall be such as may be prescribed. (3) For the purpose of adjudging compensation under this section, the Central Government may, by notification, nominate an officer of the Central Government, not below the rank of Joint Secretary to the Government of India, to be an adjudicating officer for holding an inquiry in the prescribed manner, after giving any person concerned an opportunity of being heard.