Section 446 — Application of fines

The court imposing any fine under this Act may direct that the whole or
any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the
payment of a reward to the person on whose information the proceedings were instituted.
1[446A. Factors for determining level of punishment.—The court or the Special Court, while deciding
the amount of fine or imprisonment under this Act, shall have due regard to the following factors, namely:—
(a) size of the company;
(b) nature of business carried on by the company;
(c) injury to public interest;
(d) nature of the default; and
(e) repetition of the default.
2[446B. Lesser penalties for certain companies.—Notwithstanding anything contained in this Act, if
penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small
company, start-up company or Producer Company, or by any of its officer in default, or any other person
in respect of such company, then such company, its officer in default or any other person, as the case may

1. Ins. by Act 1 of 2018, s. 91 (w.e.f. 9-2-2018).
2. Subs. by Act 29 of 2020, s. 62, for section 446B (w.e.f. 22-1-2021).

be, shall be liable to a penalty which shall not be more than one -half of the penalty specified in such
provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of
an officer who is in default or any other person, as the case may be.
Explanation.—For the purposes of this section,—
(a) “Producer Company” means a company as defined in clause (l) of section 378A;
(b) “start-up company ” means a private company incorporated under this Act or under the
Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued
by the Central Government in the Department for Promotion of Industry and Internal Trade.]