SAT rejects Axis Bank's application for recovering Rs 1 cr in Modex International Securities matter

The Securities Appellate Tribunal (SAT) has rejected an application from Axis Bank seeking directions to recover more than Rs 1 crore of professional clearing member charges in the Modex International Securities Ltd case.

The Securities Appellate Tribunal (SAT) has rejected an application from Axis Bank seeking directions to recover more than Rs 1 crore of professional clearing member charges in the Modex International Securities Ltd case. In its capacity as a professional clearing member, Axis Bank had appealed against an order by the National Stock Exchange in the Modex International case. The bourse had directed Axis Bank to release certain securities that were owned by the bank since those securities had been legally transferred to its account.

The bank had cleared the trading of Modex International. Axis Bank had sought permission to dispose Rs 21.62 crore worth securities and then release the remaining securities given by Modex to it. In July, the tribunal passed an order allowing Axis Bank to sell certain securities to recover dues worth up to Rs 21.61 crore.

Later, Axis Bank filed an application seeking clarification/ modification/ review of the July order. In its application, Axis Bank said that recovery of almost Rs 21.61 crore is complete but it is entitled to recover interest and certain professional clearing member charges which as on date amounts to a little over Rs 1 crore, according to an order passed by SAT on August 17.

"... we are of the opinion that the application is misconceived. The relief claimed by the appellant through this Misc. Application is beyond the relief claimed in the memo of appeal. Our order dated July 3, 2020 is clear and requires no clarification or modification. "The present application seeking further relief of Rs 1,00,48,624.96 was not a relief claimed in the original appeal and cannot be granted in the present application through a review," the tribunal said.

While noting that no directions can be issued, the tribunal also said the application being misconceived is rejected summarily. Comments from Axis Bank o the SAT order was awaited.