Waiver of pre-deposit of penalty application limited; tribunal directs 10% deposit within six weeks and issues notice

Application for waiver of pre-deposit of penalty was contested by the enforcement authority on grounds of alleged asset siphoning; tribunal found applicants in poor financial condition but rejected full waiver and directed an interim deposit of 10% of the penalty within six weeks, failure to comply to attract consequences; notice of appeal was issued. The ruling balances a financial incapacity defence against enforcement concerns and requires partial pre-deposit as a condition for entertaining the appeal.

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Issues: Whether the applicants should be granted waiver of pre-deposit of the penalty amount or, alternatively, be required to deposit a reduced portion of the penalty in view of their asserted poor financial condition.

Analysis: The applicants sought complete exemption from pre-deposit on the ground that the company is non-functional, has no material assets and its loan account is declared NPA, and one individual applicant asserted lack of managerial control and inability to pay. The respondent opposed complete waiver, alleging asset siphoning and contending that no full exemption should be granted. The decision weighs the parties' competing claims about present financial incapacity and the need to secure the penalty amount during the appellate process.

Conclusion: The applicants are not granted full waiver; they are directed to deposit 10% of the penalty amount within six weeks as a condition for interim relief.

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