Amended and updated notes on section 392 of Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 w.e.f. 21st December, 2020. Detail discussion on provisions and rules related to punishment for contravention.
Chapter XXII (Section 379–393) of the Companies Act, 2013 (CA 2013) deals with the provisions related to companies incorporated outside India. Section 392 of CA 2013 provides for punishment for contravention.
Recently, we have discussed in detail section 391 (Application of sections 34 to 36 and Chapter XX) of CA 2013. Today, we learn the provisions of section 392 of the Companies Act 2013.
The provisions of section 392 are effective from 1st April, 2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 392 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXII |
| Chapter Name | Accounts of Companies |
| Section No. | 392 |
| Section Name | Punishment for contravention |
| Monthly Updated Edition | Company Law PDF |
Punishment for contravention
Section 392 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014 and was amended by the Companies (Amendment) Act, 2020 w.e.f. 21.12.2020.
Without prejudice to the provisions of section 391, if a foreign company contravenes the provisions of this Chapter, the foreign company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and in the case of a continuing offence, with an additional fine which may extend to fifty thousand rupees for every day after the first during which the contravention continues and every officer of the foreign company who is in default shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees.
MCA Notification No. S.O. 3156(E) [05.08.2021]: In exercise of the powers conferred by section 393A, the Central Government has exempted the following companies from complying the provisions of section 392:-
- Foreign companies;
- Companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India,
insofar as they relate to the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the International Financial Services Centres (IFSC) set up under section 18 of the Special Economic Zones (SEZ) Act, 2005.