2022 (9) TMI 1672 - AT - SEBI

Challenged the notice of attachment of the bank and demat accounts pursuant to the attachment proceedings - Imposition of penalty - interest charged u/s 28A and in the alternative it is high and disproportionate to the quantum of penalty imposed initially by the AO - appellant not paid the penalty amount prompting recovery proceedings including attachment notices - Appellant being aggrieved filed an appeal before this Tribunal which was dismissed against which a civil appeal was preferred before the Supreme Court which was dismissed in the year 2019 - the order of the AO has become final and the amount of penalty imposed was liable to be paid - HELD THAT - Admittedly the amount of penalty has not yet been paid even though it was passed eight years back. If the amount is not paid within 45 days then interest is payable under Section 28A of the SEBI Act. The submissions made by the learned counsel for the appellant is devoid of any merit and therefore all the appeals are dismissed on the same terms. This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order.

Summary

The Securities Appellate Tribunal (SAT), Mumbai, presided by Justice Tarun Agarwala, addressed multiple appeals challenging the notice of attachment of the appellant's bank and demat accounts pursuant to recovery proceedings. The appeals arose from a penalty order passed by the Adjudicating Officer (AO) in 2014-15, which was upheld by the Tribunal and the Supreme Court, rendering the penalty final. The appellant had not paid the penalty amount, prompting recovery proceedings including attachment notices. The appellant contended that interest charged under Section 28A of the SEBI Act was either impermissible or disproportionately high. The Tribunal rejected these contentions, holding that since the penalty remained unpaid beyond 45 days, interest was lawfully payable. The Tribunal found the appellant's submissions "devoid of any merit" and dismissed all appeals. Delay in filing was condoned, and exemption from filing the certified copy of the impugned order was granted. Key holding: "If the amount is not paid within 45 days then interest is payable under Section 28A of the SEBI Act." The appeals were dismissed accordingly.