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TMI Blog2018 (11) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Civil Application (Stamp) No.31034 Of 2018 With Civil Application (Stamp) No.30832 Of 2018 Mr. VVLN Shastri a/w Mr.Rajan Pillai i/b Lex India Juris Gujar for the Appellant. Mr. Vijay Kantharia a/w Mr.D.P. Singh for the Respondent. P.C. : 1. By these Appeals, the appellants are challenging the orders passed on 30th March, 2009 and 31st January, 2018. 2. The order in original dated 30th March, 2009 adjudicates a notice styled as a 'Show Cause Notice' dated 8th October, 2003 issued to M/S Silverline Technologies Limited, Shri Ravi Subramanian, Chairman, Shri Krishna Kumar Subramanian, Vice President, Shri K. Kulathu Subramanian @ Mohan Subramanian, a Wholetime Director, for contravention of Section 8 of the Foreign Exchange Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impose the following penalties: 1. M/s. Silverline Technologies Ltd. Rs.20,00,00,000/(Rupees Twenty Crores Only) 2. Shri Ravi Subramanian, Chairman Rs.1,00,00,000/(Rupees One Crore only) 3. Sh. Krishna Kumar Subramanian Rs.1,00,00,000/Vice President (Rupees One Crore only) 4. Sh K. Kulathu Subramanian@ Mohan Subramanian, Director Rs.50,00,000/ (Rupees Fifty Lakhs only) While imposing the penalties, I have kept in mind the fact that at the relevant time, there was a global recession especially in the I.T. Sector and the e Commerce and dot.com business has taken a big hit after 9/11 in USA and that there was large scale retrenchment of the work force across the globe especially in I.T. sector. The penalty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of the penalty amount either in cash or provide unconditional bank guarantee in favour of the authority. It is in these circumstances that the Tribunal held that the requirement of Section 19(1) and the two provisos below it are satisfied. The Appellate Tribunal clarified that the compliance with this order would enable the appellants to argue their Appeals on merits. In the case of default, each of these Appeals would stand dismissed. The Tribunal passed this order on 14th July, 2009 to deposit this amount. Since there was a default, the Appeals stood dismissed. 6. An attempt was made to revive these Appeals and by filing applications for restoration. It is common ground that the Tribunal heard such applications and firstly on 8th July, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this order indicates that though the Appeals were dismissed for non-compliance with the order and directions issued on 14th July, 2009, the Tribunal indulged these appellants enough. This indulgence came in the form of hearing their Review Petitions and giving them an opportunity to show cause as to why this order of 14th July, 2009, which is self-operative, should not be allowed to take effect without the same being recalled or the conditions therein relaxed. On two occasions, the Tribunal found that the appellants and the representatives were absent. Then a fresh application was made for recalling all the earlier orders, but the Tribunal imposed a condition on the appellants that in the event they are still willing to comply the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her than those referred to in sub-section(1) of section 17, or the Special Director (Appeals), may prefer an appeal to the Appellate Tribunal; Provided that any person appealing against the order of the Adjudicating Authority or the Special Director (Appeals) levying any penalty, shall while filing the appeal, deposit the amount of such penalty with such authority as may be notified by the Central Government. Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Ever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n merits. Such a pre-condition is imminently fair, just and reasonable. It does not deny the appellant a right of appeal as is now projected before us. It ensures that justice would be done as well. Thus, the right of appeal has not been defeated and frustrated and as is now complained. In fact from 14th July, 2009, we have travelled upto 31st October, 2018. Despite this enormous passage of time, the appellants have not complied with this order and the conditions imposed therein. We were prepared to give further time to the appellant to comply with this order, but their counsel argued that they do not have any money. Given their precarious financial position and undue hardship, we must set aside this condition altogether or reduce the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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