Pre-deposit waiver and penalty stay: complete relief refused, but the deposit requirement was reduced pending appeal.

The article addresses waiver of pre-deposit and stay of recovery of a penalty pending appeal under Rule 209A. It notes that complete waiver was refused because no prima facie case was shown, and the allegations against the appellant were supported by recorded statements, so the penalty was not shown to lack basis at the stay stage. The plea of financial hardship was considered, but no supporting evidence was produced. The pre-deposit direction was therefore treated as stiff, and the amount was reduced to Rs. 50,000 while recovery of the balance was stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of the entire pre-deposit and stay of recovery of the penalty pending appeal.

Analysis: The appellant did not establish a prima facie case for complete waiver. The authority found that the allegations implicating the appellant were supported by recorded statements and that the penalty under Rule 209A was not shown to be without basis at the stage of stay. At the same time, the direction for pre-deposit was considered stiff in view of the plea of financial hardship, even though no supporting evidence was produced.

Conclusion: The request for complete stay of the penalty was rejected, but the pre-deposit was reduced to Rs. 50,000 and recovery of the balance was stayed pending disposal of the appeal.

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