M/S. Jv Stock Broking (P). Ltd. vs Sebi
- CitationAppeal No. 916 of 2022
Ratio decidendi
The rule this decision rests on
Where a penalty imposed by the Adjudicating Officer has become final following dismissal of the appeal against it, and the penalty amount is not paid within the period stipulated in the order (45 days from its date), interest becomes payable on the unpaid amount, and a recovery certificate that includes such interest is not vitiated by error.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date of Decision : 16.12.2022 Misc. Application No. 1631 of 2022 In Appeal No. 916 of 2022 M/s. JV Stock Broking (P). Ltd. 121, Padam Towers II, 14/113, Civil Lines, Kanpur - 208001. ..... 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. Manish Chhangani, Advocate with Ms. Samreen Fatima, Mr. Sumit Yadav, Advocates i/b The Law Point for the Respondent. CORAM : Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member Per : Justice Tarun Agarwala, Presiding Officer (Oral) 1. Cause shown in sufficient. The order dated November 22, 2022 is recalled. Application is allowed. The appeal is restored to its original number. 2. We have heard the learned counsel for the parties. We find that the Adjudicating Officer (hereinafter referred to as 'AO') of Securities and Exchange Board of India (hereinafter referred to as 'SEBI') had passed an order dated February 21, 2018 imposing a penalty of Rs. 20 lacs against which Appeal No. 176 of 2018 was field by the appellant which was dismissed by an order dated October 11, 2019. The order of the AO became final and the appellant was required to pay the amount of penalty alongwith interest if it was not paid within 45 days from the date of the order. Since the amount has not been paid, the AO has issued recovery certificate on September 20, 2022 for a sum of Rs. 31,57,000/- which included interest amounting to Rs. 11,56,000/-. This recovery order has now been challenged in the present appeal. 3. Having heard the learned counsel for the appellant, we find that admittedly the penalty amount of Rs. 20 lacs has not been paid, consequently, interest becomes payable. We do not find any error in the recovery certificate issued by the Recovery Officer. 4. The appeal fails and is dismissed. 5. This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on 3 the digitally signed copy of this order. Certified copy of this order is also available from the Registry on payment of usual charges. Justice Tarun Agarwala Presiding Officer Ms. Meera Swarup RAJALAK Digitally signed by Technical Member 16.12.2022 SHMI RAJALAKSHMI HARISH HARISH NAIR Date: 2022.12.26 PTM NAIR 12:45:59 +05'30'
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