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Section 135: Enhanced penalty after previous conviction

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XII: Offences and Penalties
Competent Labour Forum
Act No. 36 of 2020
Section 134 All 163 Sections of Code on Social Security, 2020 Section 136

Legal Commentary & Landmark Judgments: Section 135

Section 135 of the Code enacts enhanced penalties after previous conviction, mandating mandatory imprisonment of not less than two years extending up to five years, and a fine of three lakh rupees, for repeat offenders convicted of social security contribution defaults.

  • Mandatory Escalated Prison Sentences for Recidivism: Imposes a mandatory minimum sentence of two years imprisonment for any employer convicted a second or subsequent time of failing to remit contributions.
  • Substantial Financial Retribution: Prescribes a mandatory fine of three lakh rupees, eliminating judicial discretion to impose nominal or lenient financial penalties on repeat corporate offenders.
  • Ineligibility for Statutory Compounding: Explicitly excludes repeat offenders convicted under this section from seeking compounding of offenses under Section 139.
Key Landmark Precedents:
  • Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: Supreme Court held that persistent corporate recidivism in withholding worker retiral funds requires uncompromising judicial sentencing to protect the social security architecture.
  • Organo Chemical Industries v. Union of India (1979) 4 SCC 573: Affirmed that repeat offenders who treat social security fines as routine business expenses must be subjected to coercive personal incarceration.
  • State of M.P. v. Kedar Narain AIR 1969 MP 110: Affirmed that previous convictions must be strictly proved through certified trial records to sustain enhanced repeat sentencing.
Courtroom Practice & Strategic Litigation Guidance:

In litigating subsequent offenses, verify the formal proof of prior conviction: the prosecution must place the certified judgment of the previous conviction on trial record under Section 298 CrPC / Section 334 BNSS to invoke the mandatory two-year sentence under Section 135.

Section 134 All 163 Sections of Code on Social Security, 2020 Section 136