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CS Professional · Drafting, Pleadings and Appearances · Art of Advocacy and Appearances

Rohan Engineering Ltd defaults in complying with section 134. While advising on exposure before the hearing, CS Meera states the penalty under section 134(8). Which is correct?

Under section 134(8), the company is liable to a penalty of three lakh rupees and every officer in default to fifty thousand rupees. The option reversing these amounts is wrong, and the section prescribes monetary penalties rather than imprisonment.

  1. ACompany three lakh rupees; every officer in default fifty thousand rupeesCorrect
  2. BCompany fifty thousand rupees; every officer in default three lakh rupees
  3. CCompany and each officer one lakh rupees each
  4. DOnly imprisonment, with no monetary penalty

Explanation

Section 134(8) as substituted provides a penalty of three lakh rupees on the company and fifty thousand rupees on every officer in default. The reversed option swaps the amounts.

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