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Right Finstock Pvt. Ltd. vs Sebi

Securities Appellate Tribunal30 October 2017J.P. Devadhar

Ratio decidendi

The rule this decision rests on

The Tribunal's reasoning rests on two points, each stated as a principle of its own: The delay of 888 days in filing the appeal is condoned where the peculiar facts of the case justify it, the application giving the reasons for the delay. Where a personal hearing has been offered but not availed, and the adjudicating order is passed after an inordinate delay from that hearing, the Tribunal will set aside the order and direct the adjudicating officer to pass a fresh order on merits after affording the appellant 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: 30.10.2017

Misc. Application No. 251 of 2017 And Appeal No. 258 of 2017

Right Finstock Pvt. Ltd. C/161, Kamdhenu Complex, Panjarpole Ambavadi, Ahemdabad- 380 015, 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

Mr. Prakash Shah, Advocate with Mr. Robin Shah, Advocate i/b Mr. Durgesh Jaiswal and Mr. Ajay Dubey, Advocates for the Appellant.

Mr. Vishal Kanade, Advocate with Mr. Santanu Mitra and Mr. Anubhav Ghosh, Advocates i/b Desai & Diwanji for the Respondent.

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

Per: Justice J.P. Devadhar (Oral)

Misc. Application No. 251 of 2017

By this Miscellaneous Application, applicant seeks condonation of

888 days delay in filing the appeal. Although the delay is enormous, in

the peculiar facts of present case, for the reasons stated in the application,

we condone the delay.

Miscellaneous Application is disposed of accordingly. 2

Appeal No. 258 of 2017

1.

This appeal is filed to challenge the order passed by the

Adjudicating Officer ("AO" for short) of Securities and Exchange Board

of India ("SEBI" for short) on February 09, 2015.

2. In the present case, admittedly personal hearing was offered to the

appellant on April 20, 2010 whereas, the impugned order is passed

belatedly on February 09, 2015. Moreover, admittedly, till date no action

is taken by SEBI to recover the penalty imposed under the impugned

order.

3. As the appellant had failed to avail the opportunity of hearing

offered on April 20, 2010 and as there is inordinate delay in passing the

impugned order, in the peculiar facts of present case, we set aside the

impugned order and direct the AO of SEBI to pass fresh order on merits

after giving an opportunity of hearing to the appellant.

4. Appeal is disposed of in the above terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member 30.10.2017 Prepared & Compared By: PK

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