law: Companies Act, 2013 
  127.
  
    Punishment
  
  for failure to distribute dividends.
  Where
  
  a dividend has been declared by a company but has not been paid or the warrant
  
  in respect thereof has not been posted within thirty days from the date of
  
  declaration to any shareholder entitled to the payment of the dividend, every
  
  director of the company shall, if he is knowingly a party to the default, be
  
  punishable with imprisonment which may extend to two years and with fine which
  
  shall not be less than one thousand rupees for every day during which such
  
  default continues and the company shall be liable to pay simple interest at the
  
  rate of eighteen per cent. per annum during the period for which such default
  
  continues:
  Provided
  
  that no offence under this section shall be deemed to have been committed:—
  a.      where the dividend
  
  could not be paid by reason of the operation of any law;
  b.     where a shareholder
  
  has given directions to the company regarding the payment of the dividend and
  
  those directions cannot be complied with and the same has been communicated to
  
  him;
  c.      where there is a
  
  dispute regarding the right to receive the dividend;
  d.     where the dividend
  
  has been lawfully adjusted by the company against any sum due to it from the
  
  shareholder; or
  e.      where, for any other
  
  reason, the failure to pay the dividend or to post the warrant within the
  
  period under this section was not due to any default on the part of the
  
  company.