Contravention of orders of Commission
42. (1) Without prejudice to the provisions of this Act, if any person contravenes, without any reasonable
ground, any order of the Commission, or any condition or restriction subject to which any approval,
sanction, direction or exemption in relation to any matter has been accorded, given, made or granted
under this Act or fails to pay the penalty imposed under this Act, he shall be liable to be detained in civil
prison for a term which may extend to one year, unless in the meantime the Commission directs his
release and he shall also be liable to a penalty not exceeding rupees ten lakhs.
(2) The Commission may, while making an order under this Act, issue such directions to any person or
authority, not inconsistent with this Act, as it thinks necessary or desirable, for the proper implementation
or execution of the order, and any person who commits breach of. or fails to comply with, any obligation
imposed on him under such direction, may be ordered by the Commission to be detained in civil prison for
a term not exceeding one year unless in the meantime the Commission directs his release and he shall
also be liable to a penalty not exceeding rupees ten lakhs.
Penalty for failure to comply with directions of Commission and Director General
43. If any person fails to comply with a direction given by—
(a) the Commission under sub-section (5) of section 36; or
(b) the Director General while exercising powers referred to in sub-section (2) of section 41, the
Commission shall impose on such person a penalty of rupees one lakh for each day during which
such failure continues.
Penalty for making false statement or omission to furnish material information
44. If any person, being a party to a combination,—
(a) makes a statement which is false in any material particular, or knowing it to be false; or
(b) omits to state any material particular knowing it to be material, such person shall be liable to a
penalty which shall not be less than rupees fifty lakhs but which may extend to rupees one crore,
as may be determined by the Commission.
Penalty for offences in relation to furnishing of information
45. (1) Without prejudice to the provisions of section 44, if any person, who furnishes or is required to
furnish under this Act any particulars, documents or any information,—
(a) makes any statement or furnishes any document which he knows or has reason to believe to
be false in any material particular; or
(b) omits to state any material fact knowing it to be material; or
(c) wilfully alters, suppresses or destroys any document which is required to be furnished as
aforesaid, the Commission shall impose on such person a penalty which may extend to rupees
ten lakhs.
(2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such other order
as it deems fit.
Power to impose lesser penalty
46. The Commission may, if it is satisfied that any producer, seller, distributor, trader or service provider
included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in
respect of the alleged violations and such disclosure is vital, impose upon such producer, seller,
distributor, trader or service provider a lesser penalty as it may deem fit, than leviable under this Act or
the rules or the regulations:
Provided that lesser penalty shall not be imposed by the Commission in cases where proceedings for the
violation of any of the provisions of this Act or the rules or the regulations have been instituted or any
investigation has been directed to be made under section 26 before making of such disclosure:
Provided further that lesser penalty shall be imposed by the Commission only in respect of a producer,
seller, distributor, trader or service provider included in the cartel, who first made the full, true and vital
disclosures under this section:
Provided also that the Commission may, if it is satisfied that such producer, seller, distributor, trader or
service provider included in the cartel had in the course of proceedings,—
(a) not complied with the condition on which the lesser penalty was imposed by the Commission; or
(b) had given false evidence; or
(c) the disclosure made is not vital,
and thereupon such producer, seller, distributor, trader or service provider may be tried for the offence
with respect to which the lesser penalty was imposed and shall also be liable to the imposition of penalty
to which such person has been liable, had lesser penalty not been imposed.
Crediting sums realised by way of penalties to Consolidated Fund of India
47. All sums realised by way of penalties under this Act shall be credited to the Consolidated Fund of
India.
Contravention by companies
48. (1) Where a person committing contravention of any of the provisions of this Act or of any rule,
regulation, order made or direction issued thereunder is a company, every person who, at the time the
contravention was committed, was in charge 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 contravention
and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable lo any punishment
if he proves that the contravention was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions
of this Act or of any rule, regulation, order made or direction issued thereunder has been committed by a
company and it is proved that the contravention has taken place with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall also be deemed to be guilty of that contravention
and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a)"company" means a body corporate and includes a firm or other association of individuals: and
(b) "director", in relation to a firm, means a partner in the firm.