Hindustan Steel Ltd vs State Of Orissa on 4 August, 1969
Similarly, in the case of Hindustan Steel Ltd. (supra), the Apex Court has categorically laid down that even if minimum penalty is prescribed by a provision, it will not be proper for the authority to levy penalty even if it is lawful to do so when there is a technical or venial breach. It is further laid down by the Supreme Court that penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation.