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2008 (3) TMI 737 - AT - Companies LawIrregularities/illegalities in allotment of share - Certificate of registration expired and not been renewed - Unexplained delay of issue of show cause notice issued after a lapse of more than 8 years - Restraining from Accessing securities for a period of one month - violation of Clauses 1, 2 and 9 of the code of conduct prescribed in Schedule III to the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 - HELD THAT:- We cannot resist observing that there has been an inordinate delay in initiating action against the appellant. It is alleged to have committed the irregularities in the earlier part of the year 1996 and the show-cause notice was admittedly issued in June 2004. How could any one file a proper reply after a lapse of more than eight years. This long delay itself causes grave injustice to the delinquent and results in the violation of the principles of natural justice. Such delays defeat the very purpose of the proceedings. What is contended by the learned Counsel for the Board is that investigations commenced only in May 2002 and were going on till the year 2003. This is no explanation for the delay. Why could they not commence earlier. Again when investigations continue for years together, the very purpose of issuing the directions under Section 11B may be lost as in the instant case. In view of the inordinate delay in initiating action against the appellant and that too, when its certificate of registration had already expired, the impugned order cannot be sustained. Thus, we allow the appeal and set aside the impugned order leaving the parties to bear their own costs.
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