Mr. V. R. Venkatachalam vs Sebi

Date of Decision : 25.02.2020

Appeal No. 83 of 2020

Mr. V. R. Venkatachalam New No. 24 (Old No. 25), Sir C. V. Raman Road, Alwarpet, Chennai - 600018. ..... Appellant

Versus

1.

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. The Recovery Officer and Deputy General Manager, Recovery Division, (Southern Regional Office) Securities and Exchange Board of India, Overseas Towers, 7th Floor, 756 - L, Anna Salai, Chennai - 600 002.

3. ICICI Securities Ltd.

ICICI Centre, H. T. Prakash Marg, 5th Floor, Churchgate, Mumbai - 400 022. ... Respondents 2

Mr. P. N. Modi, Senior Advocate with Mr. Neville Lashkari, Mr. Durgesh Khanapurkar, Mr. Yuvraj K. Singh, Advocates i/b Desai & Diwanji for the Appellant.

Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent Nos. 1.

None for the Respondent Nos. 2.

Mr. Nitesh V. Bhutekar, Advocate for the Respondent Nos. 3.

CORAM : Justice Tarun Agarwala, Presiding Officer Dr. C. K. G. Nair, Member Justice M. T. Joshi, Judicial Member

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1. We have heard the learned counsel for the parties. The order of

the Adjudicating Officer (hereinafter referred to as 'AO') of Securities

and Exchange Board of India (hereinafter referred to as 'SEBI') dated

January 31, 2018 has travelled all the way to the Hon'ble Supreme

Court of India and has reached its finality. The penalty imposed was

required to be recovered but before it could be recovered, the appellant

obtained an interim order from the Hon'ble Madras High Court. The

said Writ Petition was disposed of finally on February 6, 2020

permitting the appellant to file the present appeal.

3 2. Based on the said order, it transpires that the appellant has

furnished title deeds of immovable properties to the Recovery Officer

which according to the appellant would be sufficient to cover the

penalty amount alongwith the interest accrued thereon. It was urged

that the shares and securities which are also attached may not be sold

by the Recovery Officer prior to selling the land. It was also urged that

the balance amount, if any, could also be paid provided some time is

given to the appellant.

3. Considering the submissions, we are of the opinion that the

appropriate remedy available to the appellant is to approach the

Recovery Officer by filing an appropriate application under Section

28A of the Securities and Exchange Board of India Act, 1992 read with

Section 220 to 227, 228A, 229, 232 etc. of the Income Tax Act and

Income Tax (Certificates Proceedings) Rules, 1962. If such an

application is filed, the Recovery Officer would deal with the

application and pass appropriate order after giving an opportunity of

hearing. It would also be open to the appellant to move an appropriate

interim application before the Recovery Officer for appropriate interim

relief pending final disposal of the main application.

4 4. The appeal is disposed of accordingly.

Sd/-

Justice Tarun Agarwala Presiding Officer

Sd/-

Dr. C. K. G. Nair Member

Sd/-

Justice M. T. Joshi Judicial Member 25.02.2020 Prepared & Compared by PTM