Sribas Chandra Das vs Sebi

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date of Decision: 26/03/2018

Appeal No.68 of 2018

Sribas Chandra Das Chakraborty Para, 22 No. Sonarpur, District : 24 Parganas (South), West Bengal - 743 358. ... Appellant

Versus

1.

Securities and Exchange Board of India Plot No.C4-A, 'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. Whole Time Member Securities and Exchange Board of India Plot No.C4-A, 'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

3. IDOL India Projects Limited 28, Pranabananda Road, 1st Floor, Post Office Garia, Kolkata - 700 084.

4. Bappadiya Mazumdar Byasali Road, 17, Sonarpur, Dist. 24 Parganas (South), West Bengal - 743 369.

5. Ajoy Kumar 88, Nai Saray Vard No.11, Anchal - Biharsharif, Nalanda, Bihar, Pin - 803 101. ... Respondents 2

Mr. Om Narayan Rao a/w Mr. Saikat Ray Chowdhury, Advocates for the Appellant.

Mr. Mustafa Doctor, Senior Advocate a/w Mr. Pulkit Sukhramani and Ms. Vidhi Jhawar, Advocates i/b The Law Point for the Respondent.

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

Per : Justice J.P. Devadhar (Oral)

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

Time Member ("WTM" for short) of Securities and Exchange Board of

India ("SEBI" for short) on December 21, 2017. By that order, IDOL

India Projects Limited ("company" for convenience) and its directors

including the appellant are directed to refund the money collected

through the redeemable preference shares from the investors with

interest @ 15% per annum and further the company and its directors

including the appellant are restrained from accessing the securities

market, directly or indirectly, till the amounts are refunded with

interest.

2. Basic grievance of the appellant is that by a letter dated 19th

October, 2016, personal hearing fixed on 20th October, 2016 was

postponed by SEBI, but the next date of hearing was not

communicated. In such a case, it is submitted that the ex-parte order

passed against the appellant deserves to be set aside.

3. It is contended on behalf of SEBI that on 15/10/2017 it had

published in two newspapers viz. Times of India, Kolkata and Anand

Bazar Patrika stating therein that the next date of hearing is fixed on

6/12/2017.

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4. Having given specific notice to the appellant fixing personal

hearing on 20/10/2006 and again having personally intimated to the

appellant that the hearing fixed on 20/11/2016 is postponed, in our

opinion, SEBI is not justified in fixing the next date for personal hearing

by way of an advertisement in the newspapers.

5. In these circumstances, we quash and set aside the impugned

order qua the appellant and restore the matter back to the WTM of SEBI

for passing fresh order on merits and in accordance with law.

6. However, it is made clear that directions contained in para 43(d)

and (h) of the impugned order dated December 21, 2017 shall continue

to be in force till fresh order is passed by SEBI. Appellant is directed to

furnish list of his assets to SEBI within one week from today.

7. 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 26/03/2018 prepared & compared by-dg