We are aware that all Indian Laws are replete with provisions for penalties and fines. Let us first understand the differences between the two.

A penalty refers to punishment imposed as a result of breaking laws, contract or rules. It is applied in both criminal and civil law. Its various forms of punishment include payment of damages, loss of legal rights attached to the property and even imprisonment.

On the other hand, a fine refers to a form of monetary punishment for a crime or offence committed. It is applied in criminal law only. Its various forms of punishment include monetary payments that may be imposed alongside trials, community service and imprisonment.

Pre-Independence, laws have been incorporated into the Indian Jurisprudence from English Law. Even post-Independence, laws promulgated in the 20th Century contain provisions for penalties and fines which make a mockery of law in the eyes of both the law-breaker as well as the victim.

It is amusing to read of judgments pronounced by law courts throughout the country involving fines and penalties involving rupee-amounts in hundreds. It is indeed amazing to know that not one of the 277 reports generated by the 21 Laws Commissions in India has deemed it fit to institute a mechanism for automatic annual updating of the quantum of financial penalties and fines under ALL Indian Laws.

Such a mechanism must consider the cost of inflation and demonetizations that may have occurred during the time-lapse between promulgation of the law and pronouncement of the judgment. In this day and age of computerization, it is not at all difficult to incorporate algorithms that automatically update the fines and penalties on an annual basis.