Authority and Imposition
Fine is imposed exclusively by courts of law after completion of trial proceedings. A fine represents a monetary punishment ordered by a judge following conviction for a criminal offense.
Penalty, conversely, is imposed directly by appropriate regulatory authorities or administrative bodies without requiring court proceedings. Regulatory agencies can impose penalties immediately upon discovering non-compliance with statutory provisions.
Legal Process Required
Fines require a full legal process including prosecution and conviction in a court of competent jurisdiction. The amount is determined by the judge considering factors like the severity of offense, facts and circumstances of the case, and the offender’s background.
Penalties do not require court proceedings and are imposed for failing to comply with provisions of an Act. The penalty can be levied directly by the concerned authority when statutory directions or fiduciary duties are breached.
Scope and Application
Fine specifically refers to monetary punishment for criminal offenses or crimes committed. It serves as punishment for wrongdoing after conviction.
Penalty encompasses a broader range of consequences beyond just monetary payments. It can include payment for damages, loss of legal rights, forfeiture of property, suspension of privileges, or even imprisonment. Penalties are applied for breaking laws, rules, or contractual obligations.
Determination of Amount
Fine amounts are determined by judges using their discretion while considering all relevant facts and circumstances of each case.
Penalty amounts are typically pre-determined and specified in statutes, regulations, or contracts. They are often standardized based on the type of violation.
Enforcement Consequences
Non-payment of fines attracts contempt of court, leading to additional punishment such as imprisonment or property attachment.
Non-compliance with penalty directions typically results in increased penalty amounts and may lead to cancellation of licenses or privileges.
In summary, fines are judicial monetary punishments requiring court conviction, while penalties are administrative consequences imposed directly by regulatory authorities for statutory non-compliance.