Interest on the penalty amount - for the period when the initial...

Interest on the penalty amount - for the period when the initial order was stayed - The High Court observed that the regulations explicitly required the issuance of a demand notice after the penalty order's stipulated payment period had passed. The court found that this procedural step was not merely directory but mandatory, thus affecting the legality of the interest imposed without following due process. Additionally, the court noted analogous principles from tax law, where the issuance of a demand notice is a precondition for the recovery of sums due under the law. Drawing from these principles, the court underscored that proper legal procedures cannot be bypassed under the guise of procedural simplicity or regulatory power. The impugned order was set aside.