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Sections 60–62 of the Semiconductor Integrated Circuits Layout-Design Act, 2000: forfeiture of goods on conviction, the employee's defence, and the three-month adjournment when the accused pleads that the registration is invalid

On conviction under section 56, the court may direct forfeiture to Government of all goods and things by means of, or in relation to, which the offence was committed, and may...

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Published
October 3, 2026
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Last updated: October 2026Verified against: Government sources

Three sections follow the offence of knowing and wilful infringement in section 56. Section 60 lets the convicting court forfeit the goods used in the offence and dispose of them. Section 61 acquits an employee who meets three conditions. Section 62 sets the procedure when the accused says the registration is invalid: adjournment for three months to apply for rectification, a stay if the application is made, and a return to the case if it is not.

This article reflects the Act as amended up to 3 October 2026 (the Act has not been amended since it was enacted in 2000). Check sicldr.gov.in for later notifications. Sections 60 to 62 have been in force since 1 May 2011. Anyone facing or bringing a prosecution should take legal dispute resolution advice early, since these sections shape the sequence.

Section 60: forfeiture

  1. 60(1). Where a person is convicted of an offence under section 56, "the court convicting him may direct the forfeiture to Government of all goods and things by means of, or in relation to, which the offence has been committed." The word is "may": forfeiture is discretionary. It follows a conviction, and the goods are forfeited to Government, not given to the proprietor.
  2. 60(2). When forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal lies against the forfeiture also.
  3. 60(3). The court before which the person is convicted "may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit".

The phrase "all goods and things by means of, or in relation to, which the offence has been committed" is wide enough to cover stock of chips, and on its words, things used to commit the offence. The text does not list categories. A foundry or distributor facing a section 56 charge should understand that a conviction can put its stock at risk. The offence itself is in sections 56 to 59.

Section 61: the employee's defence

Where a person accused of an offence under section 56 proves three things, "he shall be acquitted":

ClauseWhat the accused proves
(a)In the case which is the subject of the charge he was so employed that it relates to the duty of his employment, and was not interested in the profit accruing from the commission of the offence except the duty of his employment
(b)Having taken all reasonable precautions against committing the offence charged, he had, at the time of the alleged offence, no reason to suspect the genuineness of the registered layout-design or a semiconductor integrated circuit in which it is incorporated
(c)On demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the commission of the offence

The three clauses are joined by "and"; all must be proved. The accused carries the burden ("proves"). This is a defence for the order-taker: a warehouse manager or purchase officer who followed instructions and had no personal interest in the profit. It does not protect the person who directed the activity. Section 90 adds a related saving for a servant of a master resident in India who acts in good faith on the master's instructions; see sections 89 to 92.

Section 62: the plea that the registration is invalid

62(1): when the offence relates to a registered layout-design

Where the section 56 offence is in relation to a registered layout-design and the accused pleads that the registration is invalid:

  • (a) If the court is satisfied that the defence is prima facie tenable, it "shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of accused is recorded" to enable the accused to file an application before the Appellate Board for rectification of the register on the ground that the registration is invalid.
  • (b) If the accused proves that he made the application within that time, or within such further time as the court may for sufficient cause allow, the further proceedings in the prosecution "shall stand stayed till the disposal of such application for rectification".
  • (c) If within three months, or the extended time the court allows, the accused fails to apply to the Board for rectification, "the court shall proceed with the case as if the registration were valid".

The Board line

Sub-section (1) names the Appellate Board as the place to apply. No notification bringing sections 32 to 53 (and 55) into force was found in the India Code record or on the Registry's notifications page (checked 3 October 2026); check the current position before relying on that step. The Act gives no other forum for the application named in clause (a). Section 30 also provides rectification before the Registrar, which is in force, but the wording of section 62(1) refers only to the Board. See sections 30 and 31.

62(2): a rectification application already pending

If, before a complaint of an offence is instituted, "any application for the rectification of the register concerning the layout-design in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the Appellate Board or the Registrar", the court "shall stay the further proceedings in the prosecution pending the disposal of the application" and "shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his layout-design". This sub-section names the Registrar as well as the Board, so a pending application before the Registrar triggers the stay.

SituationCourt's step
Plea of invalidity, prima facie tenableAdjourn three months for a rectification application (62(1)(a))
Application made in timeStay of the prosecution until disposal (62(1)(b))
No application in timeProceed as if the registration were valid (62(1)(c))
Application already pending before the complaintStay and decide the charge in line with the result (62(2))

A worked example

A distributor in Surat is charged under section 56 for selling chips with a registered layout. It pleads that the registration is invalid because the design was not original. The court finds the plea prima facie tenable and adjourns for three months. The distributor's counsel files for rectification within the time, so the prosecution stays. Separately, a salesman at the distributor who only processed orders, had no interest in profit beyond his salary, took routine precautions and gave all information when asked can claim the section 61 defence. If the distributor is later convicted, the court may order forfeiture of the stock.

Need help with a prosecution or a defence?

When a section 56 complaint is filed or contemplated, the invalidity plea and the timing under section 62 need care. Our legal dispute resolution team can review the charge, the registration and the options.

Key takeaways

  • On conviction under section 56 the court may forfeit to Government the goods and things used, and may order destruction or other disposal.
  • An appeal against conviction extends to the forfeiture.
  • An employee is acquitted on proving the three conditions in section 61.
  • A prima facie tenable plea of invalid registration leads to a three-month adjournment, then a stay if an application is made.
  • Section 62(1) names the Board; no commencement notification was found for it.

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Disclaimer: Based on the Semiconductor Integrated Circuits Layout-Design Act, 2000 (never amended; commencement as notified in 2004, 2011 and 2014) and the Semiconductor Integrated Circuits Layout-Design Rules, 2001 as amended by G.S.R. 689(E) of 14 September 2012, as consulted on 3 October 2026. Check sicldr.gov.in for later notifications and current forms and fees. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 60

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Must the court forfeit goods on conviction?

No. Section 60(1) says the court "may" direct forfeiture to Government.

What happens to forfeited articles?

The court may order them destroyed or otherwise disposed of as it thinks fit.

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Sections 60: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

No. Section 60(1) says the court "may" direct forfeiture to Government.

The court may order them destroyed or otherwise disposed of as it thinks fit.

An accused who proves employment relating to duty with no interest in profit beyond it, all reasonable precautions with no reason to suspect, and full information on demand.

If the court finds the plea prima facie tenable, it adjourns for three months from the date the plea is recorded so you can apply for rectification.

The court proceeds as if the registration were valid, unless it allowed extended time.

No commencement notification was found for sections 32 to 53 and 55. Check the current position.