In Brief
The Supreme Court examined whether interest could be recovered on SEBI penalty and disgorgement orders when amounts remained unpaid. The bench held that while interest is substantive law and cannot apply retrospectively under Section 28A before 25.8.2014, tribunals may award equitable interest under the Interest Act, 1978 from the cause of action till proceedings commence. However, in the specific disgorgement case, the Court found the 21.7.2009 order expressly omitted future interest language present in similar orders by the same adjudicator, indicating deliberate choice. The severe 7-year debarment penalty for non-payment was deemed the alternative consequence. The appeals of private individuals were allowed; SEBI's penalty recovery appeals were allowed for prospective interest application.
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