· OFFENCES AND PENALTIES
Topic Overview
Cognizance & Powers
Rules regarding how courts take cognizance of offences and the powers appointed officers hold to impose penalties.
Penalties & Composition
Detailed breakdown of specific fines for violations, rules for offences by companies, and the procedure for compounding offences.
Detailed Concepts
- Section 52 – Cognizance of Offences
1. Court can take cognizance only on a complaint by:
- Appropriate Government
- Employee
- Registered Trade Union
- Inspector-cum-Facilitator
2. Competent Courts - Only the following courts can try offences under the Code:
- Metropolitan Magistrate, or
- Judicial Magistrate First Class (JMFC)
- Section 53 – Power to Impose Penalty
1. Appropriate Government may appoint officers not below the rank of Under Secretary to conduct inquiries and impose penalties for specified offences.
2. Powers of the officer - The officer may:
- Summon persons,
- Take evidence,
- Call for documents,
- Conduct inquiry,
- Impose penalty if satisfied that an offence is committed.
- Section 54 – Penalties for Offences
| Offence | Penalty |
|---|---|
| 1. Underpayment of wages | Fine up to ₹50,000 |
| 2. Repeat offence of underpayment | Imprisonment up to 3 months, or Fine up to ₹1,00,000, or Both. |
| 3. Other violations of the Code | Fine up to ₹20,000 |
| 4. Non-maintenance or improper maintenance of records | Fine up to ₹10,000 |
Opportunity before prosecution - For minor offences:
- · Inspector-cum-Facilitator must give an opportunity to comply within
- · a specified time.
- · If compliance is made, no prosecution shall be initiated.
- Section 55 – Offences by Companies
1. When a company commits an offence:
- The company, and
- Every person in charge of and responsible for the conduct of business are deemed guilty.
2. A person is not liable if he proves:
- The offence was committed without his knowledge, or
- He exercised due diligence to prevent it.
- Section 56 – Composition of Offences
Meaning - Certain offences may be settled by paying a composition amount instead of facing prosecution. Only offences notified by the Government can be compounded. Composition amount = 50% of the maximum fine.
Not allowed - Repeat offence committed within 5 years.
Authority - Compounding is done by an officer authorized by the Government.
Procedure - Application must be made in the prescribed manner.
If compounded after prosecution- Court is informed and Accused is discharged.
Failure to comply- If the person fails to: Comply with the composition order, or pay the composition amount, he becomes liable to pay an additional 20% of the maximum fine.