Tribunal restores appeal but upholds SEBI penalty for SCORES non-compliance.

The tribunal allowed the Miscellaneous Application for appeal restoration due to non-appearance but dismissed the restored appeal challenging the penalty of Rs. 1 lac imposed under section 15C of the SEBI Act for failure to obtain SCORES Login ID and password promptly. Despite arguments regarding the company's financial condition and delayed registration, the tribunal upheld the penalty amount, considering mitigating factors, and found no grounds to interfere with the adjudicating officer's decision.

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Issues:
1. Restoration of appeal due to non-appearance.
2. Imposition of penalty under section 15C of the SEBI Act.
3. Failure to obtain SCORES Login ID and password.
4. Justification for penalty imposition.
5. Penalty amount determination.
6. Mitigating factors consideration.

Issue 1: Restoration of appeal due to non-appearance
The appellant filed a Miscellaneous Application seeking restoration of the appeal, which was dismissed earlier due to non-appearance. The appellant's representative cited being held up in a traffic jam as the reason for missing previous hearings. The appeal was restored by consent and taken up for hearing.

Issue 2: Imposition of penalty under section 15C of the SEBI Act
The appellant was aggrieved by an adjudication order imposing a penalty of Rs. 1 lac under section 15C of the SEBI Act. The penalty was due to the appellant's failure to obtain SCORES Login ID and password to redress investor grievances within the stipulated time.

Issue 3: Failure to obtain SCORES Login ID and password
The appellant, a sick industrial undertaking, claimed inability to obtain SCORES registration within the stipulated time due to commercial operations suspension until 2012-13. Despite obtaining registration later, the appellant failed to access information promptly, leading to delayed resolution of investor complaints.

Issue 4: Justification for penalty imposition
The appellant argued that the penalty imposition was unjustified due to the company's poor financial condition, delayed registration under SCORES, and immediate steps taken upon notice reception. However, the tribunal found no merit in these contentions.

Issue 5: Penalty amount determination
The tribunal noted that failure to obtain SCORES registration for over a year and a half could warrant a penalty of Rs. 1 crore. Despite this, a nominal penalty of Rs. 1 lac was imposed by the adjudicating officer, considering mitigating factors.

Issue 6: Mitigating factors consideration
After assessing all factors, the tribunal upheld the nominal penalty of Rs. 1 lac, deeming it neither excessive, arbitrary, nor unreasonable. Consequently, the appeal was dismissed as no grounds were found to interfere with the adjudicating officer's decision.

In conclusion, the tribunal allowed the Miscellaneous Application for appeal restoration but dismissed the restored appeal, maintaining the nominal penalty of Rs. 1 lac imposed under section 15C of the SEBI Act.

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