Case Law Details
G. Moorthi Vs Recovery Officer (Madras High Court)
In the case of G. Moorthi vs. Recovery Officer, the Madras High Court deliberated on an issue related to a penalty imposed by the Securities and Exchange Board of India (SEBI). The case revolves around the incorrect mention of the Permanent Account Number (PAN) of the petitioner in the penalty order. Despite the incorrect PAN number, the petitioner was held liable for interest on the penalty. This article provides a detailed analysis of the court’s judgment.
Detailed Analysis:
1. Background of the Case: The Adjudicating Officer of SEBI imposed a penalty of Rs. 25,52,781 on the petitioner, even though the PAN mentioned in the order did not belong to the petitioner but to a third party. The petitioner chose to appeal this decision before the Securities Appellate Tribunal, which dismissed the appeal on 07.08.2019. Subsequently, the first respondent issued a notice attaching two of the petitioner’s bank accounts and freezing their operation, which prompted the petitioner to challenge this action through a writ petition.
2. Issue of Interest: After depositing the penalty amount pursuant to a court order, the issue revolved around the payment of interest. The first respondent claimed that the petitioner owed Rs. 17,34,791 as interest on the penalty amount from 16.06.2017 to 11.05.2023.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
