Pramod Kumar Agarwal vs Sebi
- CitationAppeal No.241 of 2017
Ratio decidendi
The rule this decision rests on
Where a penalty imposed by an adjudicating order has been paid in full during the pendency of an appeal, nothing survives for adjudication in the appeal against that penalty, and the appeal is disposed of accordingly. Where the impugned order does not impose any interest liability for delayed payment of penalty, and the order predates the insertion of Section 28A into the SEBI Act, the regulator may, within a specified period, issue a show cause notice demanding interest under that section, and the appellant is entitled to reply and to a hearing before any order on interest is passed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date : 29.9.2017
Misc. Application No.244 of 2017 And Appeal No.241 of 2017
Pramod Kumar Agarwal 2B, Grant Lane, 4th Floor, Room No.65, P.S. Bowbazar, Kolkata - 700 012. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent
With Misc. Application No.245 of 2017 And Appeal No.242 of 2017
Pramod Kumar Agarwal 2B, Grant Lane, 4th Floor, Room No.65, P.S. Bowbazar, Kolkata - 700 012. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent
With Misc. Application No.246 of 2017 And Appeal No.243 of 2017
Pramod Kumar Agarwal 2B, Grant Lane, 4th Floor, Room No.65, P.S. Bowbazar, Kolkata - 700 012. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent 2
With Misc. Application No.247 of 2017 And Appeal No.244 of 2017
Pramod Kumar Agarwal 2B, Grant Lane, 4th Floor, Room No.65, P.S. Bowbazar, Kolkata - 700 012. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent
With Misc. Application No.248 of 2017 And Appeal No.245 of 2017
Pramod Kumar Agarwal 2B, Grant Lane, 4th Floor, Room No.65, P.S. Bowbazar, Kolkata - 700 012. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent
Ms. Anjali Agrawal, Advocate for the appellants.
Mr. Vishal Kanade, Advocate with Mr. Chirag Bhavsar and Mr. Rohan Agrawal, Advocates i/b. MDP & Partners for the Respondent.
CORAM : Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member
Per : Justice J.P. Devadhar (Oral)
1.
Appellant in all these appeals has challenged the orders passed by the
Adjudicating Officer of Securities and Exchange Board of India ('SEBI' for
short) on 1.12.2009, 3.12.2009, 19.1.2010, 25.3.2010 and 29.3.2010 and
has filed Miscellaneous Applications seeking condonation of the delay in
filing the appeals. By the aforesaid orders the Adjudicating Officer has
imposed penalty on the appellant in all aggregating to Rs.18.50 lakhs. 3
2. It is not in dispute that during the pendency of these appeals the
appellant has deposited entire penalty amounting to Rs.18.50 lakhs with
SEBI. As a result of compliance of the directions contained in the
impugned order, nothing survives in these appeals.
3. However, in view of insertion of Section 28A inserted to SEBI Act
with effect from 18th July, 2013, interest is mandatorily leviable where a
person has failed to pay the penalty on the date on which Section 28A came
into force, subject to the conditions set out therein.
4. Since the impugned orders were passed prior to the insertion of
Section 28A and the impugned orders do not set out any interest liability
for the delayed payment of penalty we permit SEBI to issue show cause
notice to the appellant within 2 weeks from today demanding interest, if
deemed fit.
5. If the show cause notice is issued within 2 weeks from today, then the
appellant would be at liberty to file his reply to the show cause notice and
thereupon SEBI shall pass appropriate orders thereon after giving an
opportunity of hearing to the appellant.
6. All the appeals are disposed of in the aforesaid terms with no order
as to costs. In view of the disposal of the appeals nothing survives in the
Miscellaneous Applications. Accordingly, all the Miscellaneous
Applications are also disposed of with no order as to costs.
Sd/-
Justice J. P. Devadhar Presiding Officer
Sd/-
Dr. C.K.G.Nair Member
29.9.2017 Prepared and compared by RHN
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