M/S Aditya Forge Limited vs Sebi
- CitationAppeal No. 51 of 2019
Ratio decidendi
The rule this decision rests on
The Tribunal relies on the Supreme Court's decision in Adjudicating Officer, SEBI v. Bhavesh Pabari, and holds that the imposition of the minimum statutory penalty of Rs. 1 lakh for failure to submit an audit report within the extended time is not open to challenge on the facts, because that decision governs the matter and the penalty was imposed for a default the appellant did not cure despite an extension of time.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision : 05.03.2019
Misc. Application No. 59 of 2019 And Appeal No. 51 of 2019
M/s Aditya Forge Limited 415, G.I.D.C. Raman Gamdi, Por-391 243, Dist. Vadodara, Gujarat. .... Appellant Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent
Mr. Devesh R. Desai, Practicing Company Secretary for the Appellant.
Mr. Chirag Bhavsar, Advocate i/b MDP & Partners for the Respondent.
CORAM : Justice Tarun Agarwala, Presiding Officer Dr. C.K.G. Nair, Member
Per : Justice Tarun Agarwala, Presiding Officer (Oral)
Misc. Application No. 59 of 2019:-
1.
There is a delay of 15 days in filing the appeal. Cause
shown is sufficient. The delay in filing the appeal is condoned.
The application is allowed.
2 Appeal No. 51 of 2019:-
2. Having heard Shri Devesh Desai, Practicing Company
Secretary of the appellant Company and after perusing the
impugned order, we find that the Competent Authority of
Securities and Exchange Board of India ('SEBI' for short)
had granted time to submit the audit report which time was
extended till September 30, 2016, inspite of which the audit
report was not submitted within the stipulated period. In the
light of this default, the Authority has imposed a minimum
penalty of Rs. 1 lakh.
3. In view of the decision of the Supreme Court dated
February 28, 2019 in the matter of Adjudicating Officer,
Securities and Exchange Board of India vs. Bhavesh Pabari
(Civil Appeal No(s). 11311 of 2013), we do not find any
infirmity in the imposition of a minimum penalty of
Rs.1 lakh.
4. The appeal fails and is dismissed summarily.
Sd/-
Justice Tarun Agarwala Presiding Officer
Sd/-
Dr. C.K.G. Nair Member 05.03.2019 Prepared and compared by:msb
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