Fine vs penalty

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99 Points Posted on 18 July 2021
Hi everyone,
could you please tell me the difference between fine and penalty with an example in respect to companies act 2013




thank you in advance
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On 18 July 2021 at 19:45 Report
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This discussion clarifies the distinction between a 'fine' and a 'penalty' within the context of the Companies Act 2013. Generally, a fine is a monetary sum imposed by a court, while a penalty is a punishment for breaching a law, rule, or contract, often levied by an adjudicating authority. The conversation includes examples and points to further resources for a deeper understanding of these terms and recent amendments.

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Chartered Accountant
24588 Points Posted on 18 July 2021
Fine is a sum of money exacted as a penalty by a court of law or other authority.

Penalty is a punishment imposed for breaking a law, rule, or contract.
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On 18 July 2021 at 20:30
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99 Points Posted on 18 July 2021
[6] If a person accepts an appointment as a director in contravention of sub-section [1], he shall be punishable with fine which shall not be less than five thousand rupees but which may extend to twenty-five thousand rupees for every day after t
he first during which the contravention continues

why, fine is there instead of penalty
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On 18 July 2021 at 20:48
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STUDENT
1631 Points Posted on 18 July 2021
Yoga Ji - In your case -The default is continuing intentionally -So the penalty is imposed.
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On 18 July 2021 at 21:01
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99 Points Posted on 18 July 2021
If not intentionally did, then penalty is used right

thank you sir
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On 18 July 2021 at 21:03
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Chartered Accountant
24588 Points Posted on 18 July 2021
Yes..
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On 18 July 2021 at 22:55
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Practicing Compnay Secretary
53960 Points Posted on 21 July 2021

Read the below blog for details answer:

https://www.csdiveshgoyal.info/2019/08/difference-between-fine-penalty.H T M L

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On 21 July 2021 at 11:25
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Professional
1979 Points Posted on 21 July 2021
Fine is imposed by court, while penalty is imposed by adjudicating authority (like 234 type of penalties in IT form), for compounding one has to knock the door of court for fine cases, while not in case of penalty, 2020 amendment of companies act, 2013 decreminalize many provision of the act....
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On 21 July 2021 at 20:45
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Practicing Compnay Secretary
53960 Points Posted on 22 July 2021

Detailed article of mine on same topic published on ca club india also. you can refer that for detail.

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On 22 July 2021 at 09:47

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