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Fine vs penalty

Yoga M. (99 Points)

18 July 2021

Hi everyone,
could you please tell me the difference between fine and penalty with an example in respect to companies act 2013

thank you in advance

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 July 2021

Fine is a sum of money exacted as a penalty by a court of law or other authority.

Penalty is a punishment imposed for breaking a law, rule, or contract.

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Yoga M. (99 Points)
Replied 18 July 2021

[6] If a person accepts an appointment as a director in contravention of sub-section [1], he shall be punishable with fine which shall not be less than five thousand rupees but which may extend to twenty-five thousand rupees for every day after t
he first during which the contravention continues

why, fine is there instead of penalty

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 18 July 2021

Yoga Ji - In your case -The default is continuing intentionally -So the penalty is imposed.

Yoga M. (99 Points)
Replied 18 July 2021

If not intentionally did, then penalty is used right

thank you sir

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 July 2021

Yes..

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CS Divesh Goyal (Practicing Compnay Secretary) (50535 Points)
Replied 21 July 2021

Read the below blog for details answer:

https://www.csdiveshgoyal.info/2019/08/difference-between-fine-penalty.H T M L

2 Like

Chirag (Professional) (1979 Points)
Replied 21 July 2021

Fine is imposed by court, while penalty is imposed by adjudicating authority (like 234 type of penalties in IT form), for compounding one has to knock the door of court for fine cases, while not in case of penalty, 2020 amendment of companies act, 2013 decreminalize many provision of the act....