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<h1>Waiver of pre-deposit of penalty application limited; tribunal directs 10% deposit within six weeks and issues notice</h1> Application for waiver of pre-deposit of penalty was contested by the enforcement authority on grounds of alleged asset siphoning; tribunal found ... Application for waiver of pre deposit of penalty amount - liabilities and the loan account of the company declared NPA - interim direction for deposit - financial incapacity defence - HELD THAT:- Respondent ED strongly opposed the submissions made by the learned counsel for the applicants/appellants. Prayer is accordingly made to dismiss the application for waiver of pre deposit of penalty amount, as applicants/appellants cannot be permitted to take the plea that they are not in any financial condition to pay any penalty amount after siphoning of their assets/funds. After hearing the rival submissions and seeing the poor financial condition of the applicants/appellants, they are hereby directed to deposit only 10% of the penalty amount. The said amount be deposited within six weeks, failing which the consequences will follow. Issue notice of appeal. 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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