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J. B. PARDIWALA, R. MAHADEVAN
Jaykishor Chaturvedi & Etc. – Appellant
Versus
Securities And Exchange Board Of India – Respondent
| Table of Content |
|---|
| 1. factual background of the case (Para 1 , 2) |
| 2. arguments presented by the appellants (Para 3) |
| 3. observations of the court regarding sebi's authority (Para 4) |
| 4. legal reasoning and decisions made by the court (Para 5 , 6 , 7 , 8 , 9 , 11) |
JUDGMENT :
1. All these appeals are filed under Section 15Z of the Securities and Exchange Board of India Act, 19921[Hereinafter referred to as “SEBI Act”] challenging the common judgment and order dated 29.09.20222[For short, “the impugned order”] passed by the Securities Appellate Tribunal, Mumbai3[For short, “the Tribunal”], in Appeal Nos.626 to 628 of 2022 preferred by the appellants. By the impugned order, the Tribunal dismissed the challenge to the notices of attachment dated 23.06.2022 issued against the appellants.
2. According to the appellants, they are the promoter-directors of M/s. Brijlaxmi Leasing and Finance Limited, a company incorporated under the Companies Act and limited by shares, which is listed on the Bombay Stock Exchange and engaged in providing various financial services, including lending, loan syndication, advisory, and portfolio management, among others.
2.2. While so, the respondent conducted examination o
Statutory interest at 12% per annum on unpaid penalties arises from the expiry of the compliance period, reflecting SEBI's authority in recovery due under the Act.
The court affirmed that the Special Judge has discretion in compounding offence penalties under the SEBI Act, and can determine interest rates independently of SEBI's recommendations.
Section 26E of the SARFAESI Act grants secured creditors priority over all debts, including those recoverable by SEBI, thus affirming the bank's claim.
(1) Power of compounding must be expressly conferred by Statute which creates offence. (2) Section 147 of N.I. Act does not expressly incorporate permission of Court for compounding, conceivably beca....
The moment it is found that a dealer is to be deemed to have failed to pay tax, penalty is automatic – There is no question of considering any mens rea on part of assessee/dealer.
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