Crimson Financial Services Ltd. vs Sebi
- CitationAppeal No. 424 of 2015
Ratio decidendi
The rule this decision rests on
A regulator's communication that rejects a request without assigning any reason cannot be sustained, and the appropriate course is to set aside the communication and direct the regulator to pass a fresh order on merits after affording the affected party an opportunity of hearing.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
DATE : 26.10.2015
Appeal No. 424 of 2015
Crimson Financial Services Ltd. Crimson Square, Convenient Shopping Centre, BA Block, Mangolpuri Industrial Area Phase -2, New Delhi - 110 034. ..... Appellant
Versus
1.
Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.
2. Ms. Minakshi Gupta House No. 11, Road No. 63, West Punjabi Bagh, New Delhi, Delhi - 110 026.
3. Mr. Sahil Gupta House No. 11, Road No. 63, West Punjabi Bagh, New Delhi, Delhi - 110 026.
4. Mr. Nishil Gupta House No. 11, Road No. 63, West Punjabi Bagh, New Delhi, Delhi - 110 026.
5. Ms. Neelam Gupta A-4/7, Mianwali Nagar, Near Peeragarhi Chowk, New Delhi, Delhi - 110 087.
6. Ms. Priya Gupta A-4/7, Mianwali Nagar, Near Peeragarhi Chowk, New Delhi, Delhi - 110087.
7. Mr. Prateek Gupta A-4/7, Mianwali Nagar, Near Peeragarhi Chowk, New Delhi, Delhi - 110087. ...... Respondents
Mr. Prakash Shah, Advocate for the Appellant. Mr. J. P. Sen, Senior Advocate with Mr. Tomu Francis, Advocate for the Respondent No. 1.
2 Mr. Bharat Redij, Advocate for the Respondent Nos. 2 to 7.
CORAM : Justice J. P. Devadhar, Presiding Officer Jog Singh, Member
Per : Justice J. P. Devadhar (Oral)
1. Appellant is aggrieved by the communication of SEBI dated
September 7, 2015. By that communication request made by the appellant
on July 14, 2015 for selling the shares belonging to its clients named
therein has been rejected without assigning any reason. In the absence of
any reason disclosed in the impugned communication, it is difficult to
sustain the impugned communication. Accordingly, the impugned order is
set aside and SEBI is directed to pass a fresh order on merits and in
accordance with law after giving an opportunity of hearing to the appellant,
within four weeks from today.
2. Appeal stands disposed of in the above terms with no order as to
costs.
Sd/-
Justice J. P. Devadhar Presiding Officer
Sd/-
Jog Singh Member
26.10.2015 Prepared & Compared by PTM
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