Nilesh Palande vs Sebi

There is a delay of 2209 days in the filing of the appeal.

Urgency application has worked for itself and it is accordingly

disposed of. Exemption application is allowed.

2. This appeal is directed against the order dated January 31,

2018 passed by the Securities and Exchange Board of India

(hereinafter referred to as 'SEBI') imposing a penalty of

Rs. 1,50,000/- for violation of Section 2(i) of the Securities Contracts

(Regulation) Act, 1956 (hereinafter referred to as 'SCRA') read with

Sections 13, 16 and 18 of the SCRA.

3. A show cause notice was sent to the appellant's premises

situated in Boriwali whereas appellant resides in Virar, Palghar. The

impugned order has been passed on the premises that the notice has

been served.

4. The principal contention urged by Shri Tejas Madhavi, learned

counsel for the appellant is that appellant was not served with the

notice. Therefore, appellant had no knowledge of proceedings nor of

the impugned order. Appellant learnt about the impugned order

when recovery proceedings were initiated. Hence, there has been

delay in approaching this Tribunal. 3

5. Though Shri Manish Chhangani, learned counsel for the SEBI

sought to oppose this appeal, the aspect with regard to non-service of

notice was not seriously contested.

6. We have considered the submissions of the learned counsel

for the appellant and perused the record. Admittedly, address of the

appellant is Virar, Palghar. Notice has not been sent to that address.

No material is placed on record by the respondent to show that

appellant was served. Therefore, in our view, the impugned order

has been passed in violation of principles of natural justice. In the

facts of this case, the application for condonation of delay merits

consideration. Hence, the following order :-

ORDER

1. Delay in filing the appeal is condoned.

2. The appeal is allowed.

3. Impugned order dated January 31, 2018 is set aside. Matter

is remitted to the SEBI for fresh consideration in accordance

with law with a direction to pass fresh order after hearing the

appellant in an outer limit of three months from the date of

appearance of appellant before SEBI.

4 4. Appellant shall appear before the SEBI on June 18, 2024

without notice.

Justice P. S. Dinesh Kumar Presiding Officer

Ms. Meera Swarup Technical Member

Dr. Dheeraj Bhatnagar Technical Member 14.05.2024 PRAMILA TANAJI Digitally signed by PRAMILA TANAJI MISAL Date: 2024.05.15 13:55:15

MISAL +05'30'

PTM