Syed Abdi vs Sebi

Syed Abdi 5, Sethna Manor, 6th Road, Chembur (East), Mumbai - 400 071. ...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. Kamal Agrawal, FCA with Mr. S.K. Chaurasia, Advocate for the Appellant.

Abhiraj Arora, Advocate i/b ELP for the Respondent.

CORAM: Justice Tarun Agarwala, Presiding Officer Justice M.T. Joshi, Judicial Member

Per: Justice Tarun Agarwala, Presiding Officer (Oral)

1.

We have heard Shri Kamal Agrawal, FCA for the

appellant and Shri Abhiraj Arora, the learned counsel for the

respondent through video conference. 2

2. The present appeal has been filed against the order dated

December 27, 2019 passed by the Adjudicating Officer ('AO'

for short) of the Securities and Exchange Board of India

('SEBI' for short) imposing a sum of Rs. 3 lakh as penalty for

violation of the Equity Listing Agreement.

3. There is a delay in the filing of the appeal. The contention

of the appellant is that the impugned order was only received on

November 11, 2020 and soon thereafter the present appeal was

filed.

4. It is also the contention of the appellant that he was never

served with the show cause notice nor received any notice

indicating that the matter is listed for hearing before the AO.

5. When confronted with this fact, the learned counsel for the

respondent fairly conceded that the appellant was not served

inspite of their best efforts to serve them with the show cause

notice.

6. In view of the accepted position, we are of the opinion that

the cause shown for the delay in the filing of the appeal has

been made out. Consequently, the delay is condoned and the

application for condonation of the delay is allowed. 3

7. We are also of the opinion that the impugned order was

passed without serving a show cause notice. Hence, it was

violative of the principles of natural justice. Accordingly, the

impugned order cannot be sustained and is quashed at the

admission stage itself. The matter is remitted to the AO to

decide the matter afresh. In this regard, the appellant shall

appear before AO on February 22, 2021 on which date the

appellant will be served with the show cause notice, etc, and

thereafter the AO will proceed and decide the matter on merits

after giving an opportunity of hearing to the appellant. The

appeal is accordingly allowed.

8. We have also been informed that pursuant to the

impugned order a sum of Rs. 3,36,000/- has been deposited

under protest by the appellant. Since the order has been set aside

the amount shall be refunded to the appellant within two weeks

from today.

9. The present matter was heard through video conference

due to Covid-19 pandemic. At this stage it is not possible to sign

a copy of this order nor a certified copy of this order could be

issued by the registry. In these circumstances, this order will be

digitally signed by the Private Secretary on behalf of the bench 4

and all concerned parties are directed to act on the digitally

signed copy of this order. Parties will act on production of a

digitally signed copy sent by fax and/or email.

Justice Tarun Agarwala Presiding Officer Digitally signed by RAJALAKS RAJALAKSHMI NAIR H

HMI H NAIR Date: 2021.02.04 14:29:28 +05'30'

Justice M.T. Joshi Judicial Member 03.02.2021 msb