NCLAT Rejects SEBI's Penalty Recovery Plea

The National Company Law Appellate Tribunal (NCLAT) has rejected a request from the Securities and Exchange Board of India (SEBI) to recover a penalty from a company called Annies Apparel.

SEBI had imposed a fine of Rs 21.80 lakh on Annies Apparel for mismanaging and diverting funds.

However, the company was already in the process of being liquidated when SEBI tried to collect the penalty.

The tribunal ruled that once a company starts liquidation, all claims must be filed by a certain date, and SEBI's claim was filed too late.

The tribunal also said that the liquidator correctly followed the rules by rejecting SEBI's late claim.

SEBI argued that they were unaware of the liquidation proceedings, but the tribunal did not accept this excuse and dismissed SEBI's appeal.