[7. Penalties for contravention of Act.- [(1)] If a cinematograph or any place licensed under this Act, is used in contravention of the provisions of this Act, or of the rules made thereunder, or of the conditions and restrictions upon or subject to which any licence has been granted under this Act [or if a cinematograph is used by any person in any place of which a licence granted under this Act is revoked or suspended under section 8,] or if any person in charge of a cinematograph contravenes, any of the conditions or restrictions imposed by an order of exemption made under section 10, then the owner, or person in charge of the cinematograph, or the occupier of the place, as well as the managers, servants or agents of the person to whom the licence is granted, shall be guilty of an offence ; and shall, on conviction, [shall be punished with fine which may extend to fifty thousand rupees and in the case of a continuing offence, a further fine which may extend to five thousand rupees for each day during which the offence continues after conviction for the first such offence:]
Provided that, a person to whom a licence is granted shall not be guilty of an offence as aforesaid, if he proves that any offence committed by any person in his employ or on his behalf took place without his knowledge and consent, and that the employee or agent was not acting with his express or implied permission, and that he exercised all due diligence to prevent the commission of the offence or its continuation.]
[(2) If it appears to the Court taking cognizance of an offence under this Act, on taking such evidence as it may deem necessary, that the accused person is giving an exhibition in or at any place by means of a cinematograph without a licence granted under this Act, or in contravention of any conditions and restrictions imposed by such licence or by an order made under section 10, or when a licence is revoked or suspended under section 8, the court may order-
(a) that the place in or at which such exhibition is being given shall be sealed and ;
(b) that a cinematograph together with the machinery, appliances and apparatus, if any, be seized and kept in the custody of the licensing authority, until the complaint is finally disposed of.
(3) Where under sub-section (2), the court makes an order to seal the place and seize the cinematograph and the machinery, appliances and apparatus, it may, in that order, direct that the police shall render necessary help to the licensing authority in complying with the order so made.
(4) Where any such accused person has been convicted for contravention of the provisions of the Act the cinematograph and the machinery, appliances and apparatus seized under sub-section (2) may be forfeited to the State Government, and in case where such person is acquitted or discharged, the licensing authority shall remove the seal of the place sealed under sub-section (1) and the cinematograph and the machinery, appliances and apparatus seized and kept in custody of the licensing authority, shall be returned to him.]