Sid cheats badly and is punished (9)
I believe the answer is:
chastised
'is punished' is the definition.
(similar in meaning)
'sid cheats badly' is the wordplay.
'badly' indicates anagramming the letters.
'sid'+'cheats'='sidcheats'
'sidcheats' is an anagram of 'CHASTISED'.
'and' is the link.
(Other definitions for chastised that I've seen before include "beaten" , "Sad ethics (anag.)" , "Rebuked" , "Severely reprimanded" .)