Addendum to Order in the matter of Finalysis Credit and Guarantee Company Limited
- Order No.WTM/SM/IVD/ID10/18679-18690/2022-23
Ratio decidendi
The rule this decision rests on
Where an earlier order records as fact that every noticee has paid a penalty and that recital is found to be incorrect, the authority may correct it by addendum, and the original order is to be read with the addendum. The corrected position then governs the directions for payment. Where a penalty has been imposed jointly and severally, and proceedings initiated to enhance it also contemplate individual penalties under Section 15HA of the SEBI Act, 1992, the authority may, on the totality of the peculiar facts, dispose of the proceedings by converting the joint and several penalty into individual penalties of equal amount on each noticee. A noticee who has died before the date of the order is not directed to pay the individual penalty.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) has vide Order dated May 27, 2022 bearing reference number WTM/SM/IVD/ID10/16607/2022-23 disposed of the SCN recording therein that in the peculiar facts of the matter, the penalty of Addendum to Order in the matter of Finalysis Credit and Guarantee Company Limited
INR 18.00 Lakh that was earlier imposed jointly and severally on the 12 Noticees, has been deposited, as each of the said 12 Noticees had deposited INR 1.5 Lakh. 2. Now, it has been brought to my notice that the paragraph 22 of the said order inadvertently records an incorrect statement, i.e., “However, it has now been brought to my knowledge that notwithstanding taking myriad arguments in the present proceedings to assail the legal sanctity of the order dated September 03, 2020, all the 12 Noticees have now on their own volition have paid INR 1.50 Lakh each, aggregating to the original joint and several liability of penalty amount of INR 18 Lakh.” 3. As the aforesaid statement is not factually correct, the paragraph 22 is modified as under: As can be observed from a perusal of the aforesaid, it is noted that at the time of passing of the aforesaid order, although the 12 Noticees were contesting the joint and several liability directions of the AO, they had not paid even any partial amount of such penalty amount, which was payable by them jointly and severally. However, it has now been brought to my knowledge that notwithstanding taking myriad arguments in the present proceedings to assail the legal sanctity of the order dated September 03, 2020, few of the Noticees have on their own volition have paid partial payments towards the joint and several liability of INR 18 Lakh.
I also observe that the SCN in the present proceedings which have been initiated to enhance the penalties imposed on the Noticees, was also initiated to consider imposition of individual penalties on the Noticees as per the relevant provisions of Section 15HA of SEBI Act, 1992. However, keeping in mind the totality of the peculiar facts and circumstances of the present matter, I observe that the ends of justice would be met if the present proceedings are disposed of by modifying the joint and several penalties to individual penalty of INR 1.50 lakh on each of the 12 Noticees. 4. In view of the above, it is clarified that out of the above 12 Noticees, though a few of them (i.e. Noticee no. 1, Noticee no. 2, Noticee no. 3, Noticee no. 4, Noticee no. 7, Noticee no. 9, Noticee no. 11 and Noticee no. 12) have not paid INR 1.5 Lakh each towards the said penalty, the above order dated May 27, 2022 inadvertently recorded that each of the 12 Noticees has paid such amount. 5. It has also been brought to my knowledge that Mr. Dharmendra Harilal Bhojak (Noticee no.2) has expired on May 11, 2022. 6. Accordingly, the above-mentioned Noticees (except Noticee no. 2) shall remit / pay the said amount of penalty within 45 days of receipt of this order through Demand Draft in favour of “SEBI -Penalties Remittable to Government of India”, payable at Mumbai, or the online payment facility available on the website of SEBI, i.e., www.sebi.gov.in on the following path,
Addendum to Order in the matter of Finalysis Credit and Guarantee Company Limited by clicking on the payment link: ENFORCEMENT -> Orders -> Orders of Chairman/Members -> PAY NOW. In case of any difficulties in payment of penalties, the Noticee may contact the support at portalhelp@sebi.gov.in. 7. The Noticees are directed to send Demand Draft or furnish the details/confirmation of penalty so paid to Division Chief, Enforcement Department (EFD1 – DRA2) of SEBI. The Noticees shall provide the following details while forwarding DD/payment information: a) Name and PAN of the entity (Noticee) b) Name of the case / matter c) Purpose of Payment –Payment of penalty under AO proceedings d) Bank Name and Account Number e) Transaction Number 8. A copy of this order is being sent to the Noticees. 9. The Order dated May 27, 2022 bearing number WTM/SM/IVD/ID10/16607/2022-23 shall always be read with this Addendum.
-Sd- DATE: AUGUST 29, 2022 S. K. MOHANTY PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
Addendum to Order in the matter of Finalysis Credit and Guarantee Company Limited
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