Section 37 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 37 punishes a Government approved Test Centre that breaks the Act, the rules or its licence conditions, and separately punishes the owner or an employee who wilfully verifies or stamps a weight or measure in breach of the law. The first limb is a fine; the second can be imprisonment, fine or both. The Jan Vishwas (Amendment of Provisions) Act, 2026 re-labels the section 37(1) fine as a "penalty"; it is not yet in force unless notified.
Under section 37(1), a Government approved Test Centre that contravenes the Act, the rules or the conditions of its licence is liable to a fine up to Rs 1 lakh. Under section 37(2), an owner or employee who wilfully verifies or stamps in contravention of the law is punishable, for every contravention, with imprisonment up to one year, or fine up to Rs 10,000, or both. The Jan Vishwas Act, 2023 does not amend section 37. The 2026 Act changes only the words of sub-section (1), from "punished with fine" to "liable to penalty", once notified. The offence can be compounded under section 48.
Where the Test Centre comes from
Section 24(1) requires a person holding a weight or measure for use in a transaction or for protection to have it verified before use. Section 24(2) lets the Central Government prescribe the kinds of weights and measures whose verification must be done through a Government approved Test Centre. Section 24(3) says such a centre is notified by the Central Government or the State Government, as the case may be, in the prescribed manner, on prescribed terms and on payment of a prescribed fee. Section 24(4) requires the centre to appoint persons with prescribed qualifications and experience and to collect the prescribed fee. Our article on section 24 covers that chain. Section 37 is the penalty that sits behind it. If a centre or its staff are already facing a notice, early legal consultation helps sort out which limb applies.
The detailed conditions are made under section 52(2)(o) and (p) (Central rules) and section 53(2)(e) (State rules). The sources we work from do not reproduce the Test Centre conditions or fees, so check the rules and the licence or notification issued to the centre.
Section 37(1): the centre itself
The text: "Where any Government approved Test Centre contravenes any of the provisions of this Act or the rules made thereunder, or the conditions of the licence, it shall be punished with fine which may extend to one lakh rupees."
Points to note:
- The target is the centre, not a named individual. The provision does not say who in the centre is answerable.
- Three sources of breach: the Act, the rules, and the conditions of the licence.
- Only a fine, with a ceiling. There is no minimum and no imprisonment, and the section has no separate rate for repeat offences.
- For a centre run by a company or firm, section 49 brings in the company's responsible persons.
Section 37(2): the owner or employee
The text covers "any owner or employee of a Government Approved Test Centre performing duties in accordance with the provisions of this Act or the rules made thereunder" who "wilfully verifies or stamps any weight or measure in contravention of the provisions of this Act or the rules made thereunder". The punishment is "for every such contravention" imprisonment up to one year, or fine up to Rs 10,000, or both.
Two features matter:
- "Wilfully". A mistake in a test is not enough on the text; the section is aimed at deliberate wrong verification or stamping. The section does not define the word, so its meaning is for the court on the facts.
- "For every such contravention". Each wrongly verified or stamped instrument is a separate contravention. The section does not say how a court should count them.
A stamp certifies conformity with the standard (section 2(t)). Verification that stamps a non-conforming instrument defeats that purpose, which is why the section reaches the person who does it. Section 43 is the mirror provision for the Controller and legal metrology officers; see our article on sections 42 and 43.
The three layers
| Layer | Section 37(1) | Section 37(2) |
|---|---|---|
| 1. As enacted in 2010 | Test Centre "shall be punished with fine which may extend to one lakh rupees" | Imprisonment up to one year, or fine up to Rs 10,000, or both |
| 2. Jan Vishwas Act, 2023 (in force; Schedule item 40) | Not amended (item 40 lists sections 25, 27, 28, 29, 31, 34, 35 and 48) | Not amended |
| 3. Jan Vishwas Act, 2026 (Act 8 of 2026; in force only from the date the Central Government notifies; item 66(O)) | "Shall be punished with fine" becomes "shall be liable to penalty which may extend to one lakh rupees" | Not amended |
The 2026 change matters in practice because of the shift in vocabulary from a criminal "fine" to a "penalty". The amending text does not say who will impose the penalty or by what procedure, so wait for the notification and any rules. The improvement-notice scheme added by the 2026 Act (new section 15(6) and (7)) applies to "any provision of the Act or rules or directions issued", and the suspension or revocation in section 15(7) speaks of "registration or approval". Whether a Test Centre notified under section 24(3) would be reached that way is something the notification and rules will have to show; do not assume it.
Compounding and appeals
Section 37 is within "sections 27 to 39" in section 48(2), so the Director (or a specially authorised officer) can compound it, and within "sections 33 to 37" in section 48(3), so the Controller (or a specially authorised officer) can as well. The compounding sum cannot exceed the maximum fine for the offence (section 48(3) proviso). Rule 32A of the Packaged Commodities Rules (as amended up to March 2022) does not list section 37, so the sum depends on whatever the rules in force prescribe. Read our article on section 48.
Section 50(1)(d) and (e) let a person appeal from decisions or orders under sections "27 to 37" of a legal metrology officer under section 14 to the Controller, and from the Controller to the State Government or an officer it authorises. The time limit is 60 days, extendable by up to 60 more for sufficient cause (section 50(2)). See section 50.
Who is exposed
| Person | Exposure |
|---|---|
| Test Centre (as an entity) | Section 37(1), for any breach of the Act, rules or licence conditions |
| Owner of the centre | Section 37(2), if he wilfully verifies or stamps in breach |
| Employee or technician | Section 37(2), for wilful wrong verification or stamping |
| Trader whose instrument was wrongly stamped | Not punished by section 37; but the stamp may not protect an instrument that does not conform (see section 33) |
Example 1. A centre stamps a batch of counter scales without carrying out the prescribed tests because the queue is long. If this was done knowingly, the technician is exposed under section 37(2) for each instrument, and the centre is exposed under section 37(1) for breach of the rules.
Example 2. A centre fails to keep to a condition of its licence, such as a condition about records. There is no wilful stamping of any instrument, so section 37(2) is not engaged, but section 37(1) applies to the centre.
Need help with a Test Centre compliance issue?
If you run or work for a notified Test Centre and have received an inspection note or show-cause notice, it helps to map each allegation to section 37(1) or 37(2) before replying. Our legal consultation service can review the notification, the licence conditions and the inspection record with you. Bring the notice, the licence and recent verification registers.
Key takeaways
- Section 37(1) punishes the Test Centre with a fine up to Rs 1 lakh for breaching the Act, rules or licence conditions.
- Section 37(2) punishes an owner or employee who wilfully verifies or stamps in contravention: imprisonment up to one year, or fine up to Rs 10,000, or both, for every contravention.
- The 2023 Jan Vishwas Act does not amend section 37; the 2026 Act turns the sub-section (1) "fine" into a "penalty" once notified.
- Section 37 can be compounded by the Director and the Controller under section 48.
- Test Centre conditions and fees are in rules and notifications not reproduced in our sources.
Read next
- Section 24 of the Legal Metrology Act, 2009: Verification, stamping and test centres
- Sections 38 and 39 of the Legal Metrology Act, 2009: Penalty for unregistered and non-standard imports
- Sections 42 and 43 of the Legal Metrology Act, 2009: Vexatious search and wilful wrong verification
- Verification and Stamping of Weights and Measures
Disclaimer: Based on the Legal Metrology Act, 2009 (Act 1 of 2010) as enacted, read with the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force; it does not amend section 37) and the Jan Vishwas (Amendment of Provisions) Act, 2026 (in force only from the date the Central Government notifies), and the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended up to March 2022), as on 30 September 2026. State Legal Metrology rules, Test Centre notifications, later amendments and notifications change; verify the current position before acting.