Section 446B, 447, 454, 454A of The Companies (Amendment) Act 2019

Amendment of section 446B of Companies Act 2013

40. In section 446B of the principal Act, for the portion beginning with the words "punishable with fine" and ending with the words "specified in such sections", the words "liable to a penalty which shall not be more than one-half of the penalty specified in such sections" shall be substituted.

Amendment of section 447 of Companies Act 2013

41. In section 447 of the principal Act, in the second proviso, for the words "twenty lakh rupees", the words "fifty lakh rupees" shall be substituted.

Amendment of section 454 of Companies Act 2013

42. In section 454 of the principal Act,- (i) for sub-section (3), the following sub-section shall be substituted, namely:- "(3) The adjudicating officer may, by an order- (a) impose the penalty on the company, the officer who is in default, or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this Act; and (b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit."; (ii) in sub-section (4), for the words "such company and the officer who is in default", the words "such company, the officer who is in default or any other person" shall be substituted; (iii) in sub-section (8),- (a) in clause (i), for the words "does not pay the penalty imposed by the adjudicating officer or the Regional Director", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be," shall be substituted; (b) in clause (ii)- (i) for the words "Where an officer of a company", the words "Where an officer of a company or any other person" shall be substituted; (ii) for the words "does not pay the penalty", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be," shall be substituted.

Insertion of new section 454A. Penalty for repeated default.

43. After section 454 of the principal Act, the following section shall be inserted, namely:- "454A. 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.".

Repeal and savings

44. (1) The Companies (Amendment) Second Ordinance, 2019 is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.