Sections 122 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 122 imposes a penalty on a person who refuses or fails to furnish information that the Central Government or the Controller requires under section 100(5) or section 146, and a heavier penalty on a person who furnishes false information in answer. Section 123 imposes a penalty on a person who contravenes section 129, which restricts patent agency work to registered agents. Both sections were re-cast by the Jan Vishwas (Amendment of Provisions) Act, 2023, in force for the Patents Act from 1 August 2024. If you receive a request for information about working of your patent or you act for others before the Patent Office, our legal consultation team can help you answer correctly.
s.122(1): refusing or failing to give the Central Government information under s.100(5) or the Controller information or a statement under s.146 is liable to penalty up to one lakh rupees, plus one thousand rupees for every day after the first for continuing refusal or failure. s.122(2): false information that the person knows or has reason to believe false, or does not believe true: penalty of one half per cent of total sale, turnover or gross receipts (audited accounts) or five crore rupees, whichever is less. s.123: contravening s.129 (practice as a patent agent without registration): penalty up to five lakh rupees, plus one thousand rupees a day after the first.
Amendments to know
In section 122(1) the penalty words ("he shall be liable to penalty which may extend to one lakh rupees ... continues") replace what the footnote calls "the long line" of the earlier text, and in section 122(2) and section 123 certain earlier words are replaced. All three substitutions were made by the Jan Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023), with effect from 1 August 2024. The earlier wording is not reproduced in the printed text and is not relied on here. Section 121, between sections 120 and 122, is omitted. The Tribunals Reforms Act, 2021 did not change these sections, and the Jan Vishwas Act, 2026 does not mention them.
Section 122(1): refusal or failure to furnish information
"If any person refuses or fails to furnish:— (a) to the Central Government any information which he is required to furnish under sub-section (5) of section 100; (b) to the Controller any information or statement which he is required to furnish by or under section 146, he shall be liable to penalty which may extend to one lakh rupees, and in case of the continuing refusal or failure, a further penalty of one thousand rupees for every day after the first during which such refusal or failure continues."
There are two triggers.
| Limb | Information | Linked section |
|---|---|---|
| (a) | To the Central Government, under section 100(5) | Section 100 deals with use of inventions for purposes of Government; see our post on government use of patents |
| (b) | To the Controller, any information or statement required "by or under section 146" | Section 146 is the Controller's power to call for information from patentees; see our article on sections 145 and 146 |
Two amounts apply: a penalty "which may extend to one lakh rupees" and a daily penalty of one thousand rupees "for every day after the first" for continuing refusal or failure. Words "refuses or fails" cover both a plain refusal and a failure to reply. The Patents Rules, 2003 prescribe how and when the information is to be furnished under section 146; that is not in this text and is not stated here.
Section 122(2): false information
"If any person, being required to furnish any such information as is referred to in sub-section (1), furnishes information or statement which is false, and which he either knows or has reason to believe to be false or does not believe to be true, he shall be liable to penalty for a sum equal to one half per cent. of the total sale or turnover, as the case may be, of business or of the gross receipts in profession as computed in the audited accounts of such person, or a sum equal to five crore rupees, whichever is less."
Points to note:
- The information is the kind referred to in sub-section (1): to the Central Government under section 100(5), or to the Controller under section 146.
- The state of mind is stated in three alternative forms: he knows it is false; he has reason to believe it is false; or he does not believe it to be true.
- The penalty is a sum equal to one half per cent of the total sale or turnover of business, or of the gross receipts in profession, "as computed in the audited accounts of such person". The text says "or a sum equal to five crore rupees, whichever is less". So the penalty is the lower of the two figures.
- This is a fixed formula, not a "may extend to" ceiling. The text reads "liable to penalty for a sum equal to".
- There is no daily penalty in sub-section (2).
For a company with audited turnover of ten crore rupees, one half per cent is five lakh rupees, which is less than five crore rupees, so that is the amount. A very large business hits the five crore rupees cap. The text does not say which financial year's accounts are used; it says "audited accounts of such person".
Section 123: practice by non-registered patent agents
"If any person contravenes the provisions of section 129, he shall be liable to penalty, which may extend to five lakh rupees, and in case of the continuing default, a further penalty of one thousand rupees for every day after the first during which such default continues."
Section 129 is the restriction on persons who may practise as patent agents; see our article on sections 129 and 130. Section 123 attaches the consequence of breaching it. The penalty may extend to five lakh rupees, with one thousand rupees for every day after the first for a "continuing default".
Comparison of the amounts
| Provision | Trigger | Penalty | Daily penalty |
|---|---|---|---|
| s.122(1) | Refusal or failure to furnish information (s.100(5) or s.146) | Up to one lakh rupees | One thousand rupees for every day after the first |
| s.122(2) | False information | One half per cent of turnover or gross receipts, or five crore rupees, whichever is less | None stated |
| s.123 | Contravening s.129 | Up to five lakh rupees | One thousand rupees for every day after the first |
All three are penalties, not offences. The Controller may authorise an officer referred to in section 73 to hold an inquiry and impose them under section 124A, after giving the person concerned a reasonable opportunity of being heard; an appeal lies under section 124B. See our article on sections 124A and 124B.
Illustration (invented)
Ocean Alloys Pvt. Ltd. receives a requirement from the Controller to furnish a statement about the working of its patent. It does not reply. It has refused or failed to furnish the statement required under section 146, so it is liable to a penalty which may extend to one lakh rupees, and a further one thousand rupees for every day after the first during which the failure continues. If it replies with a statement it knows to be false, section 122(2) can apply instead, with the one half per cent formula.
In a second case, Mr. Dev Anand, a consultant who is not on the register of patent agents, files patent applications for clients and signs as their agent. If this contravenes section 129, section 123 makes him liable to a penalty up to five lakh rupees and one thousand rupees a day after the first for a continuing default. Section 129 itself says who may act.
What the sections do not say
- They do not say how the daily penalty is counted when the failure ends and restarts.
- Section 122 does not prescribe the form of information; section 146 and the rules do.
- Section 123 does not itself define practice by a non-registered agent; section 129 does.
- Neither section says anything about imprisonment.
Need help responding to the Controller or checking agency rules?
A late or wrong reply to a requirement under section 146 can cost more than the original task. Our legal consultation team can review the requirement, prepare an accurate statement and advise on how to act within the agent rules.
Key takeaways
- Section 122(1): penalty up to one lakh rupees, and one thousand rupees for every day after the first, for refusing or failing to furnish information under section 100(5) or section 146.
- Section 122(2): false information attracts one half per cent of turnover or gross receipts in the audited accounts, or five crore rupees, whichever is less.
- Section 123: contravening section 129 attracts a penalty up to five lakh rupees and one thousand rupees for every day after the first.
- All three are penalties imposed after an inquiry under section 124A, with an appeal under section 124B.
- All three forms were substituted with effect from 1 August 2024.
Read next
- Section 120: unauthorised claim of patent rights
- Section 124: offences by companies
- Sections 124A and 124B: adjudication of penalties and appeal
- Form 27: statement of working of patent (annual)
Disclaimer: Based on the Patents Act, 1970 as amended up to the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and time limits under the Patents Rules, 2003 change from time to time and are not covered here. This article is general information, not legal advice; check the official text before acting.