Section 40: Recovery of penalties

40. Recovery of penalties.__ (1) For the recovery of any amount from an undertaking, the Commission may serve upon the concerned person or the chief executive or director of the said undertaking, a copy of a notice in the prescribed form requiring such person to pay the said amount within the time specified in the notice. (2) If the amount referred to in the notice under sub-section (1) is not paid within the prescribed time, the Commission may proceed to recover the said amount from the person or undertaking in default in any one or more of the following manners, namely:__ (a) attachment of immovable or sale of any movable property, including bank account of the person or undertaking; (b) appointment of a receiver for the management of the movable or immovable property of the person or undertaking; (c) recovery of the amount as arrears of land revenue through the District Revenue Officer; (d) require any of the following, by notice in writing, the person to deduct and pay the sum specified in the notice on or before such date as may be so specified, namely:__ (i) from whom any money is due or may become due to the undertaking; (ii) who holds, or controls the receipt or disposal of or may subsequently hold, or control the receipt or disposal of, any money belonging to the undertaking or on account of the undertaking; or (iii) who is responsible for the payment of any sum to the undertaking. (3) Any bank, receiver, District Revenue Officer or undertaking who has paid any sum in compliance with a notice under sub-section (2) shall be deemed to have paid such sum to the Commission in respect of the undertaking, and the receipt of the Commission shall constitute a good and sufficient discharge of the liability of such bank, receiver, District Revenue Officer or undertaking to the extent of the sum referred to in such receipt. (4) If any bank, receiver, District Revenue Officer or undertaking on whom a notice is served, fails to attach, receive, recover, deduct and pay, as the case may be, the amount specified in the said notice, such bank, receiver, District Revenue Officer o r undertaking shall be treated as a defaulter and the amount specified in the said notice shall be recoverable from him or it, as the case may be, by the Commission in accordance with the provisions of this Act. (5) The Commission may, by order, direct any bank, receiver, District Revenue Officer or undertaking which is a defaulter as referred to in sub-section (4), to pay by way of penalty, such sum as specified in the order, after giving to the bank, receiver, District Revenue Officer or undertaking an opportunity of being heard, it determines that such bank, receiver, District Revenue Officer or undertaking has wilfully failed to comply with the order of the Commission. (6) For the purposes of the recovery of the amount under sub-section (2), the Commission shall have the same powers as a civil court has under the Code of Civil Procedure 1908 (Act V of 1908). (7) The Commission may make rules regulating the procedure for the recovery of amounts under this section and any other matters connected with or incidental to the operation of this section. (8) All penalties and fines recovered under this Act shall be credited to the Public Account of the Federation.

Effective date: 2010-01-01

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