[1][a]Where the second appellate authority is of the opinion that the designated officer has failed to provide service without sufficient and reasonable cause, then he may impose lump sum penalty which shall not be less than 500 rupces and not more than 5000 rupeces.
[b]Where the second appellate authority is of the opinion that the designated officer has caused delay in providing the service, then he may impose a penalty at the rate of 250 rupees per day for such delay on the designated officer, which shall not be more than 5000 rupees :
Provided that the designated officer shall be given a reasonable opportunity of being heard before any penalty is imposed on him.
[2]Where the second appellate authority is of the opinion that the first appeal officer has failed to decide the appeal within the stipulated time limit without any sufficient and reasonable cause, then he may impose a penalty on first appeal officer which shall not be less than 500 rupees and not more than 5000 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 order to give such amount as compensation to the appellant from the penalty imposed under sub-section [1]or[2] or both, as the case may be, which shall not exceed to the imposed penalty.
[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 sufficient and reasonable cause, may rccommend disciplinary action against him under the service rules applicable to him.