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2021 (9) TMI 1392 - SC - SEBIFraud by the company - Liability of directors - Concealing and suppressing the material facts as in violation of the provisions of Section 12A of SEBI Act - Director guilty for violating Section 12A of the SEBI Act - scheme to defraud any shareholder or investor HELD THAT:- Appellate Tribunal was impressed by the view taken by it in another case decided around the same time viz., in the case of ‘Adi Cooper v. Securities and Exchange Board of India’ [2019 (11) TMI 1380 - SECURITIES APPELLATE TRIBUNAL, MUMBAI] Placing reliance on the said decision, the Securities Appellate Tribunal allowed the appeal preferred by the respondent. Be it noted, the decision of the Securities Appellate Trib[2019 (11) TMI 1380 - SECURITIES APPELLATE TRIBUNAL, MUMBAI]unal in the case of ‘Adi Cooper v. Securities and Exchange Board of India’ has been reversed by this Court in [2021 (9) TMI 1391 - SUPREME COURT] - As a result, it is not open to place reliance on the said decision. Further, we have noticed that the SEBI in its order which has been set aside by the Securities Appellate Tribunal, had adverted to the specific role of the respondent as noticee No. 6. It is noticed that besides being party to the loosely worded resolution, which paved way to the company for resorting to fraudulent transaction, he had complete knowledge about the same. These aspects have not been squarely dealt with by the Securities Appellate Tribunal in the impugned judgment. Taking any view of the matter, therefore, this appeal ought to succeed. The impugned judgment and order passed by the Appellate Tribunal is set aside. Instead, the parties are relegated before the Securities Appellate Tribunal for reconsideration of the appeal afresh.
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