Section 7: Penalty

(1)(a) Where the second appellate authority is of the opinion that the designated officer has failed to provide a service without sufficient and reasonable cause, he may impose a lump sum penalty which shall not be less than five hundred rupees and not more than five thousand rupees. (b) Where the second appellate authority is of the opinion that the designated officer has caused delay in providing a service without sufficient and reasonable cause, he may impose a penalty at the rate of two hundred and fifty rupees per day, which shall not exceed five thousand rupees for such delay on the designated officer. (c) The penalty imposed by the second appellate authority under clause (a) or (b) would be recoverable form the salary of the designated officer: Provided that before imposing any penalty under this sub-section, the person on whom penalty is proposed to be imposed shall be given a reasonable opportunity of being heard. (2) Where the second appellate authority is of the opinion that the first appeal officer has failed to decide an appeal within the stipulated time limit without assigning sufficient and reasonable cause, he may impose a penalty on the first appeal officer which shall not be less than five hundred rupees and more than five thousand rupees. Provided that the first appeal officer shall be given a reasonable opportunity of being heard before any penalty is imposed on him. (3) The second appellate authority may also order that such an amount be given as compensation to the appellant from the penalty imposed under sub-section (1) or (2) or both, as the case may be, as shall not exceed the penalty so imposed. (4) The second appellate authority, if it is satisfied that the designated officer or the first appeal officer has failed to discharge the duties assigned to him under this Act, without assigning sufficient and reasonable cause, may recommend disciplinary action against him under the service rules applicable to him.