OFFENCES AND PENALTIESCentral

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

1[30C. Appellate Authority.--(1) The Central Board of Reserve Bank may designate such officer or committee of officers as it deems fit to exercise the power of Appellate Authority.

(2)The Appellate Authority shall have power to pass such order as it deems fit after providing a reasonable opportunity of being heard to the person in default.
(3)The Appellate Authority may, by an order stay the enforcement of the order passed by the adjudicating authority under section 30A, subject to such terms and conditions, as it deems fit.
(4)Where the person in default fails to comply with the terms and conditions imposed by order under sub-section (3) without reasonable cause, the Appellate Authority may dismiss the appeal.]

Summary

The Central Board of Reserve Bank gets to decide who acts as the Appellate Authority (it can be an officer or a group of officers).
The Appellate Authority must give the person appealing a fair chance to be heard before making a final decision.
The Appellate Authority can temporarily pause the penalty or cancellation while the appeal is happening, but they can attach strict conditions to this pause.
If the person appealing breaks the conditions of the pause without a good reason, the Appellate Authority can throw out the entire appeal.

Practical examples

1Green Tree Assets appeals a penalty. The Appellate Authority agrees to pause the collection of the penalty while the appeal is heard, on the condition that Green Tree deposits 10% of the fine into a holding account. Green Tree agrees and makes the deposit.

2The Appellate Authority pauses a cancellation order for Red Brick Financial but requires them to submit weekly financial reports as a condition. Red Brick stops sending the reports and gives no excuse. Because they broke the condition, the Appellate Authority dismisses their appeal entirely.

FAQ

1. Who creates the Appellate Authority?

The Central Board of Reserve Bank designates officers to serve as the Appellate Authority.

2. Can the Appellate Authority pause a penalty while I appeal?

Yes. They can issue a stay order, which temporarily pauses the enforcement, but they will likely place conditions on you.

3. What happens if I ignore the conditions of the stay order?

If you fail to follow the conditions without a reasonable excuse, the Appellate Authority will likely dismiss your appeal altogether.

Test yourself

Q1.Under Section 30C of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, who designates the officer or committee to act as the Appellate Authority?

Q2.Under Section 30C of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what procedural step must the Appellate Authority take before passing an order?

Q3.Under Section 30C of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, if the Appellate Authority pauses a penalty under Section 30A, what happens if the appellant ignores the conditions attached to that pause without a good reason?

Q4.Section 30C of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 allows the Appellate Authority to pause the enforcement of an order made under Section 30A. What is the legal term used in the text for pausing this enforcement?

30BPreviousSection 30B Appeal against penalties.30DNextSection 30D Recovery of penalties.

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