147. Punishment for contravention
(1) If any of the provisions of sections 139 to 146 (both inclusive) is contravened,
the company shall be punishable with fine which shall not be less than twenty-five thousand
rupees but which may extend to five lakh rupees and every officer of the company who is in
default shall be punishable with imprisonment for a term which may extend to one year or
with fine which shall not be less than ten thousand rupees but which may extend to one lakh
rupees, or with both.
(2) If an auditor of a company contravenes any of the provisions of section 139,
section 143, section 144 or section 145, the auditor shall be punishable with fine which shall
not be less than twenty-five thousand rupees but which may extend to five lakh rupees:
Provided that if an auditor has contravened such provisions knowingly or wilfully
with the intention to deceive the company or its shareholders or creditors or tax authorities,
he shall be punishable with imprisonment for a term which may extend to one year and with
fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh
rupees.
(3) Where an auditor has been convicted under sub-section (2), he shall be liable to—
(i) refund the remuneration received by him to the company; and
(ii) pay for damages to the company, statutory bodies or authorities or to any
other persons for loss arising out of incorrect or misleading statements of particulars
made in his audit report.
(4) The Central Government shall, by notification, specify any statutory body or
authority or an officer for ensuring prompt payment of damages to the company or the
persons under clause (ii) of sub-section (3) and such body, authority or officer shall after
payment of damages to such company or persons file a report with the Central Government
in respect of making such damages in such manner as may be specified in the said notification.
(5) Where, in case of audit of a company being conducted by an audit firm, it is proved
that the partner or partners of the audit firm has or have acted in a fraudulent manner or
abetted or colluded in any fraud by, or in relation to or by, the company or its directors or
officers, the liability, whether civil or criminal as provided in this Act or in any other law for
the time being in force, for such act shall be of the partner or partners concerned of the audit
firm and of the firm jointly and severally.