Chapter 12 
Legal Action and Penalties  

(1) Suits may be filed and action taken under this act only on complaints filed by the appropriate department or the director, managing agent or any other administrative officer or shareholder  of the company or any other concerned persons, in respect to any matter under this act. But, even if no compaint is deceived from any persons in connection with cases under its jurisdiction, is mentioned in Sub-Section (2), the appropriate department may initiate action..... and take other necessary action and then made decision thereon. 

(2) The power to take action on and dispose of cases relating to offences punishable under Section 147 shall vest in the concerned district court and the power to take action on and dispose of all other cases filed under this act shall vest in the appropriate department. 

(3) An appeal may be filed with the  Court against the decision made or order issued by the district court or the appropriate department under Sub-Section (2). Provided that in cases punishable under Section 149, no appeal shall be entertained against a decision or order of the appropriate department which involves a fine or compensation of two hundred ruppees or less. 

147. Fine not Exceeding Two Thousand Rupees or Imprisonment for a Term not Exceeding Two Years or Both to be Awarded. A fine not exceeding two thousand rupees or imprisonment for a term not exceeding two years, or both, may be awarded to any of the following persons for the offences mentioned below : 

(1) To any direction, managing agent or employee of the company in case he causes or attempts to cause any loss to the company or any person by inserting false particulars in any concerned documents of the company deliberately or through negligence or with malefide intentions. 

(2) To any direction, managing agents or employee of the company, in case he fails to maintain or cause to be maintained accounts, records or registers and required under this act, or suppresses, conceals or damages such accounts, registers or records deliberately or through negligence or with malatide intentions, so as to cause loss to the company or any persons. 

(3) To the auditor of the company in case he inserts false particulars in his report while discharging his duty or omits necessary comments while auditing the accounts deliberately  negligence or with dishonest motives. 

(4) To the Government Liquidator or the liquidator, in case he does not convene the meeting of creditors under Section 122 or 132 or makes payment contary to the order or priocity prescribed in Section 125, or fails to maintain accounts, records or registers under Section 123 or does not take over accounts and documents, or maintain false records or fails to submit the report which he is required to submit, or submits false report or does not hand over cash, stores or accounts to be submitted by him on the termination of his assignment. 

(5) To any director, managing agent, Government Liquidator or any employee, in case he does not hand over documents, records, cash and stores in his charge on the termination of his office or on receipt of order to liquidator the company to the person appointed to receive them, and to the latter in case he fails to receive them. 

148. Power to Impose Fine Not Exceeding One Thousand Rupees 

A fine not exceeding one thousand rupees may be awarded to any  person committing the following offences : 

(a) To any person, in case he allots shares in contravention of the provisions of Sub-Section (1) of Section 21. 

(b) To every director of the company, in case it purchase its own shares or shares of its principal company from out of its reserves in contravention of this act. 

(c) To the person who commences or orders the commencement of business in contravention of Section 44. 

(d) To any person who takes or order action beyond the jurisdiction of  the company as mentioned in Section 69. 

(e) To any person, in case he does not convene the general meeting which he is required to convene under this act, or does not prepare document to be made available to shareholders before the convening of  the general meeting or fails to submit document which he is required to submit at the general meeting under Section 58. 

(f) To any person who is required to produce, hand over or furnish accounts or records when sought by the auditor, in case he fails to do so. 

(g) To the auditor, in case he fails to submit the report specified  in Section 104, or does not fulfil his duty thereunder and to the liquidator, in case he does not submit the accounts and reports of  the work done by him. 

149. Power to Impose Fine Not Exceeding Five Thousand Rupees 

Except in matters provided for in Section 147 and 148, a fine not exceeding five thousand rupees shall be awarded to any person who fails to perform any function which he is required to perform under this act, or performs any function prohibited by this act, or fails to perform any function which he is required to perform within the prescribed time-limit or in accordance with the prescribed procedure. 

150. Payment of Compensation for Losses 

punishable under this act or by contravening any provision of this act or the articles, he shall personally pay compensation also for such losses. 

151. Record of Fines to be Submitted 
 
In case any person causes any loss to the company shareholder or creditor or any other person by committing any effence which is The appropriate department shall submit a record of the fines imposed by it under this act to the authority of the regional court empowered to collect fines. Such authority on his part shall collect them like arrears due to the court.