Anil Kumar Dhawan vs Sebi

Date of Decision: 13.4.2023

Misc. Application No.342 of 2023 And Misc. Application No.343 of 2023 And Appeal No.307 of 2023

Anil Kumar Dhawan I-1501, Ajnara Integrity, Raj Nagar Extension, Ghaziabad, Uttar Pradesh-201001. ...Appellant

Versus

Securities and Exchange Board of India SEBI Bhavan, BKC, Plot No.C4-A, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra. ...Respondent

Mr. Vikas Gupta, Advocate i/b. Jural for the Appellant.

Mr. Vishal Kanade, Advocate with Mr. Mihir Mody, Mr. Arnav Misra and Mr. Mayur Jaisingh, Advocates i/b. K Ashar & Co. for the Respondent.

CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member

Per: Justice Tarun Agarwala, Presiding Officer (Oral) 2

1.

We have heard the learned counsel for the parties.

The present appeal has been filed for quashing the

order dated 24th February, 2021 passed by the

Adjudicating Officer imposing a penalty.

2. There is a delay in the filing of the appeal. The

ground urged is that the show cause notice was never

served nor any opportunity of hearing was given. In

this regard, we had directed the respondent to file an

affidavit.

3. A perusal of the assertion made in the reply clearly

indicates that the show cause notice was never served.

Thereafter, opportunity of personal hearing was given.

In our opinion, service of show cause notice is

essential for a party to put in a reply and contest the

matter. If the show cause notice is not served the

entire proceedings are in violation of the principles of

natural justice as embodied under Article 14 of the

Constitution of India.

3

4. Thus, on this short ground we are satisfied that since

the appellant was not served with the show cause

notice the delay in the filing of the appeal is condoned.

The application is allowed.

5. For the same reason the impugned order being

violative of the principles of natural justice is quashed

and is set aside. The matter is remitted to the

Adjudicating Officer to pass fresh order after giving an

opportunity of hearing.

6. In this regard, the appellant shall appear before the

Adjudicating Officer on 28th April, 2023 on which date

he would be served with a show cause notice and the

matter will proceed thereafter in accordance with law.

All the misc. applications are disposed of accordingly.

7. 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 4

available from the Registry on payment of usual

charges.

Justice Tarun Agarwala Presiding Officer

Ms. Meera Swarup Technical Member

RAJALAKS Digitally signed by HMI RAJALAKSHMI HARISH HARISH NAIR

13.4.2023 NAIR Date: 2023.04.20 16:29:52 +05'30'

RHN