Companies Act Section 454A — Penalty for repeated default

CHAPTER XXIX MISCELLANEOUS

Commercial / Corporate

Summary

If a company, its officer, or any other person has already been penalised for a default under the Act, and then commits the same type of default again within three years from the date of the order imposing that penalty (by the adjudicating officer or the Regional Director), they will be liable for the second or any later default to pay an amount equal to twice the penalty that is normally provided for that default under the relevant provisions of the Act.

Official Text

Where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act.]