Penalty
Section 172 of the Companies Act, 2013 deals with penalty. If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing fail The Act came into force on 01 Apr 2014.
1[172. Penalty.-- If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.]
Section 172, The Companies Act, 2013 (Act 18 of 2013).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Hemanta Sharma & Ors. v. The Registrar of Companies, Orissa
Court's Decision & Legal Precedent
DATE VERIFIED Final Order / Judgment 2024-01-30 (order-20.pdf). s.149(1) second proviso + Rule 3 require a woman director for prescribed classes; s.149(2) one-year compliance for pre-existing companies must be read from Rule 3 force date 01.04.2014 (to 31.03.2015). Where OERC interim takeover vested management in GRIDCO before window expiry, non-appointment complaint does not sustain conviction. Distinct from existing Cos §149 row on wrong CNR ODHC010222802023 (Southern Electricity).
On this section: s.172 penalty for breach of Chapter XI (incl. s.149 woman-director) cannot be sustained where the s.149(2) compliance window had not expired.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The prosecution was on complaint made by the Registrar of Companies (RoC) pursuant to show cause notices dated 23rd June, 2015. By the judgments there was finding that all accused persons were guilty of offences punishable under section 172 in Companies Act, 2013, for contravening provisions in section 149(1)(b) read with rule-3(ii) of Companies (Appointment and Qualifications of Directors) Rules, 2014. 2. Mr. Mohanty, learned senior advocate assisted by Mr. Rakesh Behera, learned advocate appear on behalf of appellants in COA nos.1, 2 and 3 of …
Questions about Section 172
What have the courts held on Section 172 of the Companies Act?
Hemanta Sharma & Ors. v. The Registrar of Companies, Orissa (30 Jan 2024) is the leading judgment on this section among those set out below: s.172 penalty for breach of Chapter XI (incl. s.149 woman-director) cannot be sustained where the s.149(2) compliance window had not expired.
How do I find court cases under Section 172 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 172, section 172 Companies Act, section 172 of the Companies Act. People searching for it also type companies act 172 1 and companies act 172 3. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Hemanta Sharma & Ors. v. The Registrar of Companies, Orissa (30 Jan 2024).
When did Section 172 of the Companies Act come into force?
Section 172 of the Companies Act, cited as Companies Act 172, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.