OFFENCES AND PENALTIESCentral

Section 30B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

1[30B. Appeal against penalties.--A person in default, aggrieved by an order passed under sub-section (4) of section 30A, may, within a period of thirty days from the date on which such order is passed, prefer an appeal to the Appellate Authority: Provided that the Appellate Authority may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that there was sufficient cause for not filing it within such period.]

Summary

If a person or company is upset by an order cancelling their registration due to an unpaid penalty, they can appeal.
The appeal must be submitted to the Appellate Authority within thirty days of the cancellation order.
If the thirty days pass, the Appellate Authority can still accept the appeal if the person proves they had a very good reason for being late.

Practical examples

1On April 1, 2026, an adjudicating authority cancels Blue Sky Asset's registration. On April 20, 2026, Blue Sky files an appeal with the Appellate Authority. Because they filed within the thirty-day window, the Appellate Authority accepts the appeal for review.

2An order is passed against John on May 1, 2026. John suffers a severe medical emergency and is in the hospital for two months. He files his appeal on July 10, 2026. The Appellate Authority accepts the late appeal because John's hospital stay is a sufficient cause for missing the thirty-day deadline.

FAQ

1. Who do I appeal to if my registration is cancelled for not paying a penalty?

You must file your appeal with the Appellate Authority.

2. How much time do I have to file the appeal?

You have exactly thirty days from the date the cancellation order is passed.

3. What happens if I miss the thirty-day deadline?

Your appeal will usually be rejected. However, if you can prove you had a genuinely good reason for the delay, the Appellate Authority has the power to accept it late.

Test yourself

Q1.Under Section 30B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what is the standard time limit for filing an appeal to the Appellate Authority?

Q2.Under Section 30B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, under what condition can an appeal be filed after the standard time limit has expired?

Q3.Section 30B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 specifically allows appeals against orders passed under sub-section (4) of Section 30A. What specific action does a Section 30A(4) order take against a company?

Q4.Under Section 30B of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to which body is the appeal submitted?

30APreviousSection 30A Power of adjudicating authority to impose penalty.30CNextSection 30C Appellate Authority.

←Section 30A Section 30C→