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CMA Final · Corporate and Economic Laws · Specific Legal Provisions related to MSME Sector

Under section 27 of the MSMED Act, 2006, a person is convicted for the second time for intentionally contravening sub-section (1) of section 8. What is the punishment?

On a second or subsequent conviction for intentionally contravening section 8(1), the fine must be at least rupees one thousand and may extend to rupees ten thousand. The lower cap of one thousand applies only to a first conviction.

  1. AFine not exceeding rupees one thousand
  2. BFine not less than rupees one thousand but which may extend to rupees ten thousandCorrect
  3. CFine of not less than rupees ten thousand
  4. DImprisonment for a term not exceeding one year

Explanation

Section 27(1)(b) provides that for second or subsequent conviction the fine shall not be less than rupees one thousand but may extend to rupees ten thousand. The first-conviction fine is up to rupees one thousand, and the minimum of rupees ten thousand applies to a buyer contravening section 22 under section 27(2).

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