Adamina Traders Pvt. Ltd. vs Sebi
- CitationAppeal No.577 of 2022
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on the following: where a penalty imposed by the Adjudicating Officer jointly and severally upon several entities has been modified in an appeal by one of them in a companion matter, another appellant who stands in the same position is entitled to similar relief, and the penalty is accordingly to be confined to that appellant's own share. A finding of violation against the appellant is affirmed, and the joint and several liability is set aside to the extent that the appellant is required to pay only its apportioned share of the penalty.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date of Decision: 22.9.2022 Misc. Application No.749 of 2022 And Misc. Application No.750 of 2022 And Appeal No.577 of 2022 Adamina Traders Pvt. Ltd. Time Square, 7th Floor & 8th Floor, Plot No.C, CTS No.349 & 349-1, Western Express Highway, Andheri (East), Mumbai - 400069. ...Appellant Versus Adjudicating Officer Securities and Exchange Board of India SEBI Bhavan, C-4A, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai- 400 051. ...Respondent Mr. Sumit Yadav, Advocate i/b. R. V. Legal for the Appellant. Mr. Abhiraj Arora, Advocate with Mr. Shourya Tanay, Advocate i/b. ELP for the Respondent. CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member Per: Justice Tarun Agarwala, Presiding Officer (Oral) 2 1. For the reasons stated in the application, the delay in the filing of the appeal is condoned. The application is allowed. The exemption application is also allowed. 2. The appellant has challenged the order dated 6th May, 2022 passed by the Adjudicating Officer imposing a penalty of Rs.20 lakhs to be paid by 11 entities jointly and severally. 3. Against the same order, one of the entities had filed Appeal no.491 of 2022 Dizzystone Trading Pvt. Ltd. Pvt. Ltd. v. SEBI which was partly allowed with the following directions. 4. Considering the aforesaid, the appellant is also entitled for a similar relief. 5. We, accordingly, affirm the violation committed by the appellant. However, we modify the direction of the AO to pay the penalty amount jointly and severally to the extent that the appellant will pay its share of penalty amounting to Rs.2 lakhs within four weeks from today. The appeal is partly allowed. 6. This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Certified copy of this order is also available from the Registry on payment of usual charges. Justice Tarun Agarwala Presiding Officer Ms. Meera Swarup Technical Member RAJALA Digitally signed by RAJALAKSHMI H KSHMI NAIR 22.9.2022 Date: 2022.09.28 H NAIR 10:17:54 +05'30' RHN
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