CHAPTER VII
PENALTIES
84. Punishment for false statement. -Whoever,
for the purpose of causing any increase in payment or benefit under
this Act, or for the purpose of causing any payment or benefit to
be made where no payment or benefit is authorized by or under this
Act, or for the purpose of avoiding any payment to be made by himself
under this Act or enabling any other person to avoid any such payment,
knowingly makes or causes to be made any false statement or false
representation, shall be punishable with imprisonment for a term which
may extend to 1[six months], or with fine not exceeding 2[two
thousand] rupees, or with both:
3[Provided
that where an insured person is convicted under this section, he shall
not be entitled for any cash benefit under this Act for such period
as may be prescribed by the Central Government.]
1. Subs. for “Three months” by Act No. 29 of
1989, s. 32 (i), (w.e.f. 20-10-1989).
2. Subs. for “five hundred” by Act No. 29 of
1989, s. 32 (ii), (w.e.f. 20-10-1989).
3. Ins. by Act No. 29 of 1989, s. 32 (iii)
(w.e.f. 1-2-1991).
85.
Punishment for failure to pay contributions, etc.-If any person-
(a) Fails to pay any contribution which under
this Act he is liable to pay, or
(b) Deducts or attempts to deduct from the wages
of an employee the whole or any part of the employer's contribution,
or
(c) In contravention of section 72 reduces the
wages or any privileges or benefits admissible to an employee, or
(d) In contravention of section 73 or any regulation
dismisses, discharges, reduces or otherwise punishes an employee,
or
(e) Fails or refuses to submit any return required
by the regulations, or makes a false return, or obstructs any Inspector
or other official of the Corporation in the discharge of his duties,
or
(g) Is guilty of any contravention of or non-compliance
with any of the requirements of this Act or the rules or the regulations
in respect of which no special penalty is provided,
1[he shall be punishable-
2[(i) where he commits an offence under clause (a), with imprisonment
for a term which may extend to three years but-
(a) Which shall not be less than one year, in case of failure to
pay the employee's contribution, which has been deducted by him from
the employee's wages and shall also be liable to fine of ten thousand
rupees;
(b) Which shall not be less than six months, in any other case
and shall also be liable to fine of five thousand rupees:
Provided that the Court may,
for any adequate and special reasons to be recorded in the judgment,
impose a sentence of imprisonment for a lesser term;
(ii) Where he commits an offence under any of the clauses (b) to
(g) (both inclusive), with imprisonment for a term which may extend
to one year or with fine which may extend to four thousand rupees,
or with both.]
1. Subs. by Act No. 38 of 1975, s. 4, for certain words (w.e.f.
1-9-1975).
2. Subs. for clauses (i) and (ii) by Act No. 29 of 1991, s. 33,
(w.e.f. 20-10-1989).
1[85A. Enhanced punishment in certain cases after
previous conviction.-Whoever, having been convicted by a Court
of an offence punishable under this Act, commits the same offence
shall, for every such subsequent offence, be punishable with imprisonment
for a term which may extend to 2[two years and with fine of
five thousand rupees].
1. Ins. by Act No. 38 of 1975, s. 5 (w.e.f. 1-9-1975).
2. Subs. for “one year or with fine which may extend to two thousand
rupees, or both” by Act No. 29 of 1989, s. 34 (i), (w.e.f. 20-10-1989).
Provided
that where such subsequent offence is for failure by the employer
to pay any contribution which under this Act he is liable to pay,
he shall, for every such subsequent offence, be punishable with imprisonment
for a term which may extend to 1[five years but which shall
not be less than two years and shall also be liable to fine of twenty
thousand rupees].
1 Subs. for “one year but which shall not be less than three
months and shall also be liable to fine which may extend to four thousand
rupees” by Act No. 29 of 1989, s. 34 (ii), (w.e.f. 20-10-1989).
85B. Power to recover damages. –
(1) Where an employer
fails to pay the amount due in respect of any contribution or any
other amount payable under this Act, the Corporation may recover 1[from
the employer by way of penalty such damages not exceeding the amount
of arrears as may be specified in the regulations]:
Provided that before recovering
such damages, the employer shall be given a reasonable opportunity
of being heard:
2[Provided
further that the Corporation may reduce or waive the damages recoverable
under this section in relation to an establishment which is a sick
industrial company in respect of which a scheme for rehabilitation
has been sanctioned by the Board for Industrial and Financial Reconstruction
established under section 4 of the Sick Industrial Companies (Special
Provisions) Act, 1985 (1 of 1986), subject to such terms and conditions
as may be specified in regulations.]
(2) Any damages recoverable under sub-section (1) may be recovered
as an arrear of land revenue 3[or under section 45C to section
451].
1. Subs. for “from the employer such damages not exceeding the
amount of arrears as it may think to impose” by Act No. 29 of 1989,
s. 35 (a) (i), (w.e.f. 1-1-1992).
2. Ins. by Act No. 29 of 1989, s. 35 (a) (ii), (w.e.f. 1-1-1992).
3. Added by Act No. 29 of 1989, s. 35(b), (w.e.f. 1-1-1992).
85C. Power of
Court to make orders. –
(1) Where an employer is convicted of an offence for failure to
pay any contribution payable under this Act, the Court may, in addition
to awarding any punishment, by order, in writing, require him within
a period specified in the order (which the Court may if it thinks
fit and on application in that behalf, from time to time, extend),
to pay the amount of contribution in respect of which the offence
was committed, 1[and to furnish the return relating to such
contributions].
(2) Where an order is made under sub-section (1), the employer
shall not be liable under this Act in respect of the continuation
of the offence during the period or extended period, if any, allowed
by the Court, but if, on the expiry of such period or extended period,
as the case may be, the order of the Court has not been fully complied
with, the employer shall be deemed to have committed a further offence
and shall be punishable with imprisonment in respect thereof under
section 85 and shall also be liable to pay fine which may extend to
[one thousand] rupees for every day after such expiry on which the
order has not been complied with.]
1. Added by Act No. 29 of 1989, s. 36 (i), (w.e.f. 20-10-1989).
86. Prosecutions. - (l) No prosecution under this
Act shall be instituted except by or with the previous sanction of
the Insurance Commissioner 1[or of such other officer of the
Corporation as may be authorised in this behalf by the 2[Director
General of the Corporation]].
3[(2) No court inferior to that of a Metropolitan Magistrate or
Judicial Magistrate of the First Class shall try any offence under
this Act.]
(3) No Court shall take cognizance of any offence under this Act
except on a complaint made in writing in respect thereof, 4
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1. Added by Act No. 53 of 1951, s. 22.
2. Subs. by Act No. 44 of 1966, s. 35, for “Central Government”
(w.e.f. 17-6-1967).
3. Subs. for sub-section (2) by Act No. 29 of 1989, s. 36 (ii),
(w.e.f. 20-10-1989).
4. Words, “within six months of the date on which the offence
is alleged to have been committed “ omitted by Act No. 29 of 1989,
s. 36 (iii), (w.e.f. 20-10-1989).
1[86A.
Offences by companies. –
(1)
If the person committing an offence under this Act is a company,
every person, who at the time the offence was committed was incharge
of, and was responsible to, the company for the conduct of the business
of the company, as well as the company, shall be deemed to be guilty
of the offence and shall be liable to be proceeded against and punished
accordingly:
Provided
that nothing contained in this sub-section shall render any person
liable to any punishment, if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent
the commission of such offence.
(2) Notwithstanding anything contained in sub-section
(1), where an offence under this Act has been committed with the consent
or connivance of, or is attributable to, any neglect on the part of,
any director or manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall be deemed
to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation. - For the purposes of this section-
(i) “Company” means any body corporate and includes
a firm and other associations of individuals; and
(ii) “Director” in relation to-
(a) A company, other than a firm, means the managing
director or a whole-time director;
(b) A firm means a partner in the firm.]
1. Ins. by Act No. 29 of 1989, s.38, (w.e.f. 20-10-1989).