Vinod Kanji Shah vs Sebi
- CitationAppeal No. 434 of 2019
Ratio decidendi
The rule this decision rests on
The impugned penalty order rests on the same charges and substantially identical findings as the Whole Time Member's order, which this Tribunal had already set aside in part by its earlier order in Appeal No. 361 of 2018 and companion appeals; where the adjudicating officer's findings are materially identical to those set aside findings, the penalty order cannot be sustained to the extent it depends on them and must be quashed. Where the penalty order is quashed on that footing, the matter is to be remitted to the adjudicating officer for fresh decision in the light of the Tribunal's earlier observations, with each party bearing its own costs.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision : 26.02.2020
Misc. Application No. 527 of 2019 And Appeal No. 434 of 2019
Pravin N. Gala 1502, Laburnum, Mahindra Gardens, S. V. Road, Goregaon (W), Mumbai - 400062. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent
Ms. Rinku Valanju, Advocate with Mr. Sumit Yadav, Advocate i/b R V Legal for the Appellant. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
With Misc. Application No. 598 of 2019 And Appeal No. 558 of 2019
Vinod Kanji Shah Vijaya Bhuvan, 1st Floor, 2
Balaji Road, Vile Parle (West), Mumbai - 400056. ..... Appellant
Versus
Securities & Exchange Board of India ... Respondent SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.
Ms. Rinku Valanju, Advocate with Mr. Sumit Yadav, Advocate i/b R V Legal for the Appellant. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
With Misc. Application No. 618 of 2019 And Appeal No. 572 of 2019
1.
Mr. Arun N. Joshi Flat No. 6, Manas CHS, Besant Road, Santacruz - west, Mumbai - 400054.
2. Mr. Shrinivasaiyer Jambunathan Prakash CHSL, Relief Road, Daulat Nagar, Santacruz - west, Mumbai - 400054.
3. Mr. Harshawardhan M. Gajbhiye Flat No. 1301, 13th Floor, Paltiputra CHSL, A- Wing, Four Bungalows, Andheri-west, Mumbai - 400053.
4. Mr. Ajay Khera 61-C, Pocket B, Mayur Vihar Phase II, Delhi - 110091.
3 5. Mr. Deepak M. Vaishanv B-506, Virndavan, 3, Raheja Township, W E, Mumbai - 400097. ..... Appellants
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent
Mr. Kunal Katariya, Advocate i/b Shah & Ramaiya Chartered Accountant for the Appellants. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
With Misc. Application No. 619 of 2019 And Appeal No. 573 of 2019
1. Arvind Gala Flat No. 2, 2nd Floor, Plot No. 36, Pushpa Park, Daftary Road, Malad (E), Mumbai - 400097.
2. Bhavi Gandhi C-405, Gokul Garden, Thakur Complex, Kandivali (E), Mumbai - 400 101. ..... Appellants
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), 4
Mumbai - 400 051. ... Respondent
Mr. Kunal Katariya, Advocate i/b Shah & Ramaiya Chartered Accountant for the Appellants. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
With Misc. Application No. 620 of 2019 And Appeal No. 574 of 2019
Mr. Kanji Bhachubhai Rita 1601, Laburnam Towers, Mahindra Gardens, S V Road, Goregaon (W), Mumbai - 400062. ..... Appellant
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent
Mr. Kunal Katariya, Advocate i/b Shah & Ramaiya Chartered Accountant for the Appellant. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
With Misc. Application No. 621 of 2019 And Appeal No. 575 of 2019 5
1. Inventure Growth & Securities Ltd. 201, Viraj Tower, 2nd Floor, Near Landmark, Western Express Highway, Andheri (East), Mumbai - 400069.
2. Nagji K. Rita Flat No. 11, Anand Kunj, Daftary Road, Malad (East), Mumbai - 400097.
3. Virendra D. Singh 1605, Grandeur Vasant Marbour Complex, Nr. Magathane Tele Exchange, W. E. Highway, Borivali (East), Mumbai - 400066. ..... Appellants
Versus
Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent
Mr. Kunal Katariya, Advocate i/b Shah & Ramaiya Chartered Accountant for the Appellants. Mr. Anubhav Ghosh, Advocate i/b The Law Point for the Respondent.
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) 6
1. Based on the show cause notice, the Whole Time Member
(hereinafter referred to as 'WTM') of Securities and Exchange Board
of India (hereinafter referred to as 'SEBI') passed an order issuing a
slew of directions. The order of WTM was challenged by filing
various appeals which were heard and decided by this Tribunal by its
order dated October 10, 2019 (as corrected by order dated February
6, 2020) wherein certain reliefs were granted and certain findings of
the WTM were set aside.
2. Based on the same violation, a show cause notice was also
issued by the Adjudicating Officer (hereinafter referred to as 'AO')
which culminated into a penalty order dated October 30, 2019
against which the present appeals have been filed by various
noticees. All these appeals are being decided together.
3. We find from a reading of the impugned order that the charges
levelled against the appellants are virtually the same as that levelled
in the order of the WTM. Similar findings have been arrived at by
the AO which are more or less identical to the findings given by the
WTM and which findings have been set aside by us to a certain
extent.
7 4. In the light of the aforesaid, we are of the opinion that in view
of our order dated October 10, 2019 passed in Appeal No. 361 of
2018 and other companion appeals, the impugned order passed by
the AO cannot be sustained and are quashed.
5. All the appeals are allowed. The matters are remitted to the AO
to decide afresh in the light of the observation made by us in our
order dated October 10, 2019. In the circumstances of the case,
parties shall bear their own costs.
Sd/-
Justice Tarun Agarwala Presiding Officer
Sd/-
Dr. C. K. G. Nair Member
Sd/-
Justice M. T. Joshi Judicial Member 26.02.2020 Prepared & Compared by PTM
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