Dr. Chandra Prakash & Ors. vs Sebi
- CitationAppeal No.321 of 2023
Ratio decidendi
The rule this decision rests on
Where the record contains no clear evidence that a show cause notice was served on the appellant, and the impugned order was passed ex parte without any such notice or hearing, the authority has violated the principles of natural justice; an order passed in that manner is liable to be set aside insofar as it affects the appellant, and the matter is to be remitted for a fresh order after service of a show cause notice and grant of an opportunity of hearing. Delay in filing an appeal is condoned where the ground for delay, namely that the impugned order was passed ex parte without notice to the appellant, is genuine and is not disputed by the respondent on the record.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision : 25.4.2023
Misc. Application No.354 of 2023 And Misc. Application No.355 of 2023 And Appeal No.321 of 2023
Dr. Chandra Prakash 1060, Sector 25, Panchkula, Haryana-134116. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C4-A, G Block, Bandra-Kurla Complex, Mumbai-400051. ...Respondent
Mr. Kunal Katariya, Advocate with Ms. Ashmita Goradia and Ms. Pooja Bhaidkar, Advocates i/b. Aagam Doshi 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.
With Misc. Application No.356 of 2023 And Appeal No.322 of 2023 Dr. Chandra Prakash 2
1060, Sector 25, Panchkula, Haryana-134116. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C4-A, G Block, Bandra-Kurla Complex, Mumbai-400051. ...Respondent
Mr. Kunal Katariya, Advocate with Ms. Ashmita Goradia and Ms. Pooja Bhaidkar, Advocates i/b. Aagam Doshi 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.
With Misc. Application No.357 of 2023 And Appeal No.323 of 2023
Dr. Chandra Prakash 1060, Sector 25, Panchukula, Haryana-134116. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C4-A, G Block, Bandra-Kurla Complex, Mumbai-400051. ...Respondent 3
Mr. Kunal Katariya, Advocate with Ms. Ashmita Goradia and Ms. Pooja Bhaidkar, Advocates i/b. Aagam Doshi 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)
1.
Two appeals have been filed against the order dated
27th October, 2020 passed by the Whole Time Member
(hereinafter referred to as 'WTM'). One appeal has
been filed against the order of the Adjudicating Officer
(hereinafter referred to as 'AO') dated 22nd September,
2020. The issue is common and, therefore, all the
appeals are being taken up together at the admission
stage itself.
2. There is a delay in the filing of the appeals. The
ground urged is that the impugned order was passed
ex-parte and that no show cause notice or opportunity 4
of hearing was granted to the appellant. In this regard,
we had directed the respondent to take instructions.
3. The learned counsel for the respondent upon
instructions and upon a perusal of the record states that
there is no clear evidence on record to prove that the
show cause notice was actually served upon the
appellants.
4. In view of this statement, we are of the view that the
delay in the filing of the appeal is genuine and the
delay is condoned. The applications are allowed.
5. In view of the fact that the impugned order was
passed ex-parte without serving the show cause notice
we are of the opinion that the respondent has violated
the principles of natural justice in not giving an
opportunity of hearing to the appellants.
6. Thus, on this short ground the impugned orders
dated 27th October, 2020 passed by the WTM and the
order of the AO dated 22nd September, 2020 insofar as
it relates to the appellants are set aside. The appeals 5
are allowed at the admission stage. The matter is
remitted to the authority concerned to pass a fresh
order after serving the show cause notice and after
providing an opportunity of hearing. All the misc.
applications are accordingly disposed of.
7. In this regard, the appellant shall appear before the
relevant authority concerned on 10th May, 2023 on
which date the appellants will be served with the show
cause notice and the matter will proceed thereafter.
We may also observe that the authority will also take
into consideration the order of this Tribunal in the
matter of I.S. Sukhija vs. SEBI, Appeal no.408 of
2020 and other connected appeals decided on 20th
September, 2021.
8. 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 6
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 25.4.2023 NAIR Date: 2023.04.28 12:04:08 +05'30' RHN
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