Mr. Suraj Govind Prajapati vs Sebi

Date of Decision : 04.05.2023

Misc. Application No. 550 of 2023 And Appeal No. 422 of 2023

Mr. Suraj Govind Prajapati A 3, Divya Jyot Flats, Behind Alkapuri Society, Sumul Diary Road, Katargram, Surat, Gujarat - 395004. ..... Appellant

Versus

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent

With Misc. Application No. 572 of 2023 And Misc. Application No. 573 of 2023 And Appeal No. 423 of 2023

Mr. Priyank Prajapati C-4, Subhashbridge, Satlaj Society, Ahmedabad - 380027, Gujarat. ..... Appellant

Versus

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent 2

Mr. Rushin Kapadia, Advocate with Ms. Rinku Valanju, Advocate i/b R. V. Legal for the Appellants.

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

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1.

We have heard the learned counsel for the parties. Both the

appeals are against a common order and are being taken up together.

2. The appellants have challenged the order dated January 31,

2023 passed by the Whole Time Member (hereinafter referred to as

'WTM') of Securities and Exchange Board of India (hereinafter

referred to as 'SEBI') which is an interim order cum show cause

notice whereby the appellants have been restrained from accessing

the securities market and have further been directed to deposit the

unlawful gains jointly and severally. In addition to the above, other

directions have been also issued like freezing of bank accounts and

demat accounts, etc.

3. Having heard the learned counsel for the parties, we find that

the appellants had moved an application to deposit their share of the

unlawful gain as depicted in table No. 21 of the impugned order.

This application has remained pending and instead of deciding the 3

matter, the respondent have issued e-mails asking the appellants to

comply with the other directions first.

4. Considering the aforesaid, we dispose of the appeals directing

that in the event the appellants deposit the unlawful gain as depicted

against their names in table No. 21 of the impugned order, the demat

accounts and bank accounts shall be defreezed within 48 hrs. upon

the deposits. All other interim directions would continue to operate

and it would be open to the appellants to move an appropriate

application for vacation of the interim order before the WTM. If

such an application is filed, the WTM will pass an appropriate order

after giving an opportunity of hearing within four weeks thereafter.

5. The appeals are disposed of.

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 PRAMILA Digitally signed by PRAMILA TANAJI 04.05.2023 TANAJI MISAL PTM MISAL Date: 2023.05.04 14:20:00 +05'30'