“Litigating for months together for condoning a day’s delay in making payment not worthwhile.”: Calcutta HC Directs SEBI to accept One day delayed Payment
The court set aside the order dated 30th May, 2025 passed by the Recovery Officer & Dy. General manager, SEBI
The Calcutta High Court has directed the Securities and Exchange Board of India (SEBI) to accept one day delayed payment and observed that “Litigating for months together for condoning a day’s delay, if any, in making payment does not appear to be worthwhile.” The petitioner, Priya Ranjan Sah filed the supplementary affidavit. The order passed by the Recovery Officer &...
The Calcutta High Court has directed the Securities and Exchange Board of India (SEBI) to accept one day delayed payment and observed that “Litigating for months together for condoning a day’s delay, if any, in making payment does not appear to be worthwhile.”
The petitioner, Priya Ranjan Sah filed the supplementary affidavit. The order passed by the Recovery Officer & Dy. General Manager, Securities and Exchange Board of India (‘SEBI’), Kolkata, on 30th May, 2025 is annexed. SEBI contended that the petitioner was delayed by a day in making payment. According to the petitioner, the payment was made within the stipulated time period.
Usually the Recovery Officer & Dy. General Manager of SEBI normally gives instructions to make a payment within 45 days after receiving the order. If payment is not made within this period, other recovery measures, such as asset attachment and sale, may be used.
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Under Section 28A of the SEBI Act, 1992, SEBI's Recovery Officer can initiate recovery procedures if the recipient does not make payment within the allotted time. This might involve drafting a statement outlining the amount owed and then pursuing recovery by a variety of strategies, including the sale and attachment of both immovable and moveable property.
It was observed by the court that” a single day’s delay, if at all, may be condoned by the authority to save future efforts on the part of SEBI to conduct fresh auction for selling off the secured assets. Litigating for months together for condoning a day’s delay, if any, in making payment does not appear to be worthwhile. The same is sure wastage of time, energy and money.”
The single bench of Justice Amrita Sinha directed the SEBI to accept the payment of the petitioner and take all necessary consequential steps in the matter. Further set aside the order dated 30th May, 2025 passed by the Recovery Officer & Dy. General manager, SEBI.
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