Page 157 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes Penalties prescribed are from 1,500-7,500. Repeat offences attract 1 to 6 months imprisonment
and fine from 3,750-22,500. Delayed wage payments attract penalty of 750 per day of delay.

Penalty for Offences under the Act (Sec. 20)

Any person responsible for contravention of the following provisions of the Act, for the payment
of wages to an employed person, shall be punishable with fine extending to not less than
200 but to a maximum of 1000:

(a) Failure to maintain such register or record; or
(b) Willful refusal or neglect without lawful cause to furnish such information or return; or
(c) Willfully furnishing or causing to be furnished any information or return which he knows to
be false; or
(d) Refusal to answer or willfully giving a false answer to any question necessary for obtaining
any information required to be furnished under this Act.
The following offences shall be punishable with a minimum fine of 200/- but extend to
1000/- under Sec. 20(4) of the Act.
(a) Willfully obstructing an Inspector in the discharge of his duties under the Act; or
(b) refusal or willfully neglecting to afford an Inspector any reasonable facility for making any
entry, inspection, examination, supervision or inquiry authorised by or under this Act in relation
to any railway, factory or industrial or other establishment or

(c) Willful refusal to produce, on demand of an inspector, any register or other document kept in
pursuance of this Act; or

(d) preventing or attempting to prevent or doing anything which he has any reason to believe
is likely to prevent any person from appearing before or being examined by an Inspector acting
in pursuance of his duties under this Act.
Section 20(5) lays down that if any person who has been convicted of any offence punishable
under this Act, is again guilty of involving contravention of the same provision. He shall be
punishable on subsequent conviction with imprisonment for a term which shall not be less than
one month, but which may extend to six months with fine, which shall not be less than 500, but
may extend to 3000. But for the purposes of this sub-section, no cognizance shall be taken of
any conviction made than two years.
According to Sec. 20(6); if any person fails or willfully, neglects to pay the wages of any employed
person by the date fixed by the authority in this behalf, he shall without prejudice to any other
action that may be taken against him, be punishable with additional fine, which may extend to
100/- for each day for which such failure or neglect continues.

Procedure in Trial of Offences (Sec. 21)

This section provides that before any Court shall take cognizance of a complaint against any
person for an offence under this section, the following conditions must be fulfilled;

(i) an application in respect of the facts constituting of offence has been presented under Sec. 15;
(ii) the application must have been granted wholly or in part, and (iii) the authority empowered
under Sec. 15 or the Appellate Court granting the application must have sanctioned the making
of the complaint for such offence.

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