BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Hearing : 22.01.2019
Date of Decision : 01.02.2019
Appeal No. 313 of 2018
MLB Financial Services Ltd.
301, Pratap Chambers, Gurudwara Road,
Karol Bagh, New Delhi – 110005.

……Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051.

…… Respondent
Mr. Neerav Merchant, Advocate with Mr. Bharat Merchant, Advocate i/b
Thakordas & Madgavkar for the Appellant.
Ms. Vidhi Jhawar, Advocate i/b The Law Point for the Respondent.
CORAM : Justice Tarun Agarwala, Presiding Officer
Dr. C. K. G. Nair, Member
Per : Justice Tarun Agarwala, Presiding Officer
1.

Mr. Manohar Lal Bansal was a member of the Delhi Stock Exchange.

He was also a partner in a partnership firm known as M/s. Manoharlal
Bansal & Co.

This partnership was converted into a corporate entity
known as M/s. M L B Financial Services Ltd. (hereinafter referred to as
‘the appellant’). This corporate entity was also registered with Securities
and Exchange Board of India (SEBI).

2.

SEBI floated Securities and Exchange Board of India (Interest Liability
Regularisation) Scheme, 2004 wherein stockbrokers having outstanding fee
liabilities could pay the entire outstanding amount of principal along with
20% of the outstanding interest in which case they would not be liable for
payment of the balance 80% of the outstanding interest. Based on the
2
scheme, SEBI issued a fee liability statement in October 2004. As per the
statement, the appellant was required to pay a sum of Rs. 3,32,016/-. The
appellant paid a sum of Rs. 2,12,921/- towards the entire outstanding
amount of principal alongwith 20% interest.

3.

It transpires that the appellant filed Appeal No. 68 of 2005 before the
Tribunal seeking relief for setting aside the impugned fee liability statement
issued by SEBI. The Tribunal by an order dated May 9, 2006 disposed of
the appeal directing SEBI to take a final decision after taking into account
the payment made by the appellant and if adjustment was required then
SEBI was required to do so. In the meanwhile, during the pendency of the
appeal, the appellant paid an amount of Rs. 3,14,497/- under protest
pursuant to the fee liability statement dated March 16, 2005.

4.

SEBI by an order dated October 8, 2009 held that the excess amount
paid by the appellant was liable to be adjusted with the outstanding
principal liability and, accordingly, directed a revised fee liability statement
to be computed and issued to the appellant. Since then the appellant had
been requesting the respondent to issue a revised fee statement and further
refund the excess amount alongwith interest. Eventually, the respondent
refunded an amount of Rs. 3,14,497/- on June 29, 2018. The appellant
being aggrieved has filed the present appeal praying that the respondent
should be directed to pay interest on Rs. 3,14,497/- at the rate of 15% per
annum from March 28, 2005 to June 29, 2018 which amounts to
Rs. 6,25,062/- and further pay a sum of Rs. 3,32,000/- towards costs
incurred in perusing the matter.

5.

The contention of the appellant is that the respondent had unlawfully
withheld the amount of Rs. 3,14,497/- without any authority of law for a
3
period of 13 years and, therefore, is entitled to interest as well as costs of
litigation which the appellant had incurred.

6.

Having heard the learned counsel for the parties at some length, we
are of the opinion that before approaching the Tribunal for payment of
interest and costs, it would be appropriate for the appellant to approach
SEBI for the said relief. We, accordingly, dispose of the appeal with a
direction that in the event the appellant make a representation within four
weeks from today alongwith the certified copy of this order praying for
interest and for reimbursement of the costs incurred in the litigation, SEBI
would decide the representation by a reasoned and speaking order after
giving an opportunity of hearing to the appellant within four weeks
thereafter.

Sd/-
Justice Tarun Agarwala
Presiding Officer
Sd/Dr. C. K. G. Nair
Member
01.02.2019
Prepared & Compared by
PTM