Differentiate Fine and Penalty as per the Companies Act, 2013.

Difference between Fine and Penalty The Companies Act, 2013 contains provisions for adjudication of penalties by officers of the Central Government as well as imposition of fine. Fine and penalty, though may sound similar, but in actual they are different. Fine can be imposed only by a Court of law/tribunal in a proceeding, but penalty may be levied even by an administrative office(r). Therefore, imposition of fine requires prosecution in a Court of law, whereas penalty may be imposed by way of adjudication. The process for imposing fine and levying penalty are also different. Penalties creates the liability of non-compliance of the provisions and Fine is imposed as punishment.