T. S. Krishnan & Anr. vs Sebi

Date of Decision : 21.12.2020

Misc. Application No. 551 of 2020 (Delay Application) And Appeal No. 515 of 2020

1.

T. S. Krishnan

2. K Seethalakshmi

Flat No 3, Sri Sai Flats, Old No 7, New No 13, Wason Street, T Nagar, Chennai - 600017, Tamil Nadu. ..... Appellants

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. Somasekhar Sundaresan, Advocate with Ms. Yugandhara Khanwilkar, Mr. Rushin Kapadia, Advocates for the Appellants.

Mr. Mihir Mody, Advocate with Mr. Arnav Misra, Advocate i/b K. Ashar & Co. for the Respondent.

2

CORAM : Justice Tarun Agarwala, Presiding Officer Dr. C. K. G. Nair, Member Justice M. T. Joshi, Judicial Member

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1. The parents of Uma Karthikeyan have filed the present

appeal questioning the freezing of their bank accounts which has

been caused by the fact that Uma Karthikeyan was penalized by an

order dated January 2, 2019 passed by the Whole time Member

(hereinafter referred to as 'WTM') of Securities and Exchange

Board of India (hereinafter referred to as 'SEBI') and November 29,

2019 passed by the Adjudicating Officer (hereinafter referred to as

'AO') pursuant to which the bank accounts of the appellants

alongwith the daughter have been frozen.

2. The contention of the appellants is that they are not defaulters

and have nothing to do with the impugned order that has been passed

against the appellants.

3. Shri Mihir Mody, the learned counsel appearing on behalf of

the respondent states on instruction that the specific instructions were 3

issued to the bank to only freeze the single account of Uma

Karthikeyan who is the alleged defaulter and in spite of specific

instructions being issued, it transpires that the joint accounts of the

parents alongwith their daughter have been frozen.

4. In the light of the aforesaid statement being made by the

learned counsel for the respondent, we dispose of the appeal

directing the respondent to furnish a copy of the instructions so

issued by them to the bank to the appellants within 48 hours. The

appellants on the basis of the letter issued by the respondent will

serve the said letter of the respondent alongwith a request to defreeze

their bank accounts and we hope that the bank will do the needful

within 24 hours thereafter. We also direct that the respondent shall

also intimate the respondent bank to do the needful.

5. 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 and all concerned

parties are directed to act on the digitally signed copy of this order. 4

Parties will act on production of a digitally signed copy sent by fax

and/or email.

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

HMI H NAIR Date: 2020.12.22 11:43:44 +05'30'

Dr. C. K. G. Nair Member

Justice M. T. Joshi Judicial Member

21.12.2020 PTM