Interest on unpaid SEBI penalty upheld; attachment recovery sustained after statutory default continued.

Where a SEBI penalty order has attained finality but remains unpaid beyond the statutory period, interest is payable under Section 28A of the SEBI Act, 1992. On that footing, recovery by attachment of bank and demat accounts was sustained, and the challenge to the attachment notice was found to disclose no merit. The fact that the amount was said to be excessive did not justify interference with recovery once the default in payment continued.

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Issues: Whether interest could be charged on the unpaid penalty and whether the attachment proceedings initiated for recovery could be sustained.

Analysis: The penalty order had attained finality and the amount remained unpaid for several years. Under Section 28A of the Securities and Exchange Board of India Act, 1992, interest becomes payable if the amount is not paid within the stipulated period. In these circumstances, the challenge to the notice of attachment of the bank accounts and demat account did not disclose any merit.

Conclusion: The challenge to the levy of interest and the consequential attachment proceedings was rejected, and the appeals failed.

Ratio Decidendi: Where a penalty under the SEBI Act remains unpaid beyond the statutory period, interest is payable under Section 28A and recovery attachment pursuant to such default cannot be interfered with merely on the ground that the amount is excessive.

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