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Rakesh Sharma vs Sebi

Securities Appellate Tribunal6 March 2018J. P. Devadhar

Ratio decidendi

The rule this decision rests on

Where the appellant disputes service of the notice and the impugned order was passed ex parte against him, the impugned order may be set aside as against that appellant, and the matter remitted to the adjudicating authority for fresh decision on merits after affording him an opportunity of hearing.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAI

Date of Decision: 6.3.2018

Appeal No.382 of 2017

Rakesh Sharma House No.25, Sarathi Path Housing Colony, Hengrabari Road, Guwahati - 781 006. ..... Appellant

Versus

1.

Securities and Exchange Board of India SEBI Bhavan, Plot No.C4-A, "G" Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051.

2. Ambitious Diversified Projects Management Ltd. 19B, 1st Floor, Syed Amir Ali Avenue, Kolkata - 700017.

3. Shri Rajkumar Yadav Mata Deen Ka Pura, Ater Road, Bhind, Madhya Pradesh-477001.

4. Shri Pradeep Ojha Ojah Nagar, Ater Road, Bhind- 477001.

5. Shri Satyendra Singh Bhadouria 23, Ater Road, Balaji Nagar, Bhind, Madhya Pradesh - 477001. ... Respondents

Mr. D. Banerji, Advocate with Ms. Sapana Rachu for the Appellant.

Mr. Mustafa Doctor, Senior Advocate with Mr. Pranav N. Jain and Mr. Chirag Bhavsar, Advocates i/b. MDP & Partners for the Respondent no.1. None for Respondent nos.2 to 5.

CORAM : Justice J. P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per : Justice J. P. Devadhar (Oral) 2

1. This appeal is filed to challenge the order passed by the Whole Time

Member of Securities and Exchange Board of India ('SEBI' for short) on

13th November, 2017.

2. Grievance of the appellant is that the impugned order is passed

without giving an opportunity of hearing to the appellant and even the

interim order was not served upon him. It is further contented that since the

appellant was allegedly shown as a director of Ambitious Diversified

Projects Management Limited only for one day, the WTM of SEBI is not

justified in passing the impugned order against the appellant.

3. As there is dispute regarding service of the notice and the

impugned order is also an ex-parte order qua the appellant, in the facts of

the present case in our opinion, it would be just and proper to quash and set

aside the impugned order qua the appellant and restore the matter for fresh

decision on merits and in accordance with law.

4. Accordingly, we set aside the impugned order dated

13th November, 2017 qua the appellant and direct the WTM of SEBI to pass

fresh order in accordance with law after giving opportunity of hearing to

the appellant as expeditiously as possible.

5. Appeal is disposed of in the aforesaid terms with no order as to

costs.

Sd/-

Justice J. P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member

6.3.2018 Prepared and compared by RHN

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