Ratio decidendi
The rule this decision rests on
Where the Securities and Exchange Board of India has already adjudicated a lis on the same cause of action and exonerated the noticee, the Whole Time Member is not thereafter entitled to take a contrary view on that same lis, and an order passed in breach of that principle cannot be sustained and is liable to be quashed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAIDate of Decision: 20.03.2023Misc. Application No. 321 of 2022AndMisc. Application No. 317 of 2022AndMisc. Application No. 318 of 2022AndMisc. Application No. 616 of 2022AndAppeal No. 200 of 20221.Minal Bharat Patel8, Divya Darshan,N.S. Road No. 5, JVPD Scheme,Vile Parle (W),Mumbai- 400 0562. Hardik Bharat Patel8, Divya Darshan,N.S. Road No. 5, JVPD Scheme,Vile Parle (W),Mumbai- 400 0563. Ruchit Bharat Patel8, Divya Darshan,N.S. Road No. 5, JVPD Scheme,Vile Parle (W),Mumbai- 400 0564. Pat Financial Consultant Pvt. Ltd.,3-3A, Churchgate House,1st Floor, 32/34, Veer Nariman Road,Fort, Mumbai- 400 0015. Fidelity Multitrade Private Limited3-3A, Churchgate House,1st Floor, 32/34, Veer Nariman Road,Fort, Mumbai- 400 00126. Pasha Finance Private Limited3-3A, Churchgate House,1st Floor, 32/34, Veer Nariman Road,Fort, Mumbai- 400 001 ...AppellantsVersusSecurities and Exchange Board of India,SEBI Bhavan, Plot No. C-4A, G-Block,Bandra-Kurla Complex, Bandra (East),Mumbai- 400 051 ...RespondentMr. P. N. Modi, Senior Advocate with Mr. Neville Lashkari andMr. Rihal Kazi, Advocates i/b M&M Legal Ventures for theAppellants.Mr. Pradeep Sancheti, Senior Advocate with Mr. RavishekharPandey, Ms. Shefali Shankar, Ms. Rasika Ghate and Mr. NishitDhruva, Advocates i/b. MDP & Partners, Advocates for theRespondent.CORAM: Justice Tarun Agarwala, Presiding OfficerMs. Meera Swarup, Technical MemberPer: Justice Tarun Agarwala, Presiding Officer (Oral)1. The present appeal has been filed against the order datedApril 29, 2022 passed by the Whole Time Member ("WTM" forconvenience) of the Securities and Exchange Board of India("SEBI" for convenience). For the same cause of actionseparate proceedings were initiated by the Adjudicating Officer("AO" for convenience) pursuant to a show cause notice datedDecember 12, 2019 on the basis of which the AO passed anorder dated December 23, 2020 exonerating the appellant of the3alleged violations. Once the lis is decided by the respondent itis no longer open to the WTM to take a contrary view. Ourview is supported by a decision of this Tribunal in Nirmal N.Kotecha vs. SEBI in Appeal No. 580 of 2019 decided on08.06.2021. In our opinion, the matter is squarely covered bythe aforesaid decision.
2. For the reasons stated in the decision of this Tribunal in
Nirmal N. Kotecha (Supra) the impugned order cannot be
sustained and is quashed. The appeal is allowed with no order
as to costs. The Misc. Applications are disposed off
3. 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
Justice Tarun Agarwala Presiding Officer
Ms. Meera Swarup Digitally signed Technical Member 20.03.2023 PRERNA by PRERNA MANISH KHARE PK MANISH KHARE Date: 2023.03.21 16:22:57 +05'30'
