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2019 (10) TMI 1048 - AT - SEBICondonation of delay in filing appeal - Show cause notice not served on appellant - HELD THAT:- We find that due procedure for serving the show cause notice was duly followed by SEBI in accordance with the Rule 7 of the Inquiry Rules. The summons was sent at the address that was obtained by SEBI from the stock exchange. However, the fact remains that the appellant had resigned and left the service of Pioneer Securities Pvt. Ltd. in 2006 and thereafter joined Elite. The fact that the appellant had joined Elite and was working till 2017 when the attachment order was served cannot be disputed by the respondent as attachment order was served through his employer which formed the basis of his termination from his service. When the appellant came to know about the impugned order sometime in May 2017, he made an attempt to find out the matter and took steps to file a complaint before the EOW and representation before SEBI. We are constraint to observe that satisfactory explanation has not been given by the appellant for the period from May 2017 till September 2018 that is the date when the appeal was eventually filed, Appellant has made out a case that the show cause notice was not served upon him. Since the appellant had left the last known address available with SEBI and was working with another company and at another place, we are of the opinion that affixation of the show cause notice at the last known address, in the given circumstances does not amount to sufficient service and, thus, a benefit of doubt has to be given to the appellant. An opportunity should be given to the appellant to contest the matter on merits especially when a huge penalty has been imposed upon him and when there is an allegation that a fraud has been played upon the appellant by his ex-employer. We are of the opinion that the appellant is entitled to contest the matter on merits. We are also of the opinion that the delay of five years should be condoned on payment of costs. Sufficient cause has been shown by the appellant for condoning the delay. We are also of the opinion that in the larger interest of justice the delay should be condoned and the appellant should be allowed to contest the matter on merits. Consequently, for the reasons stated aforesaid, the delay in filing the appeal is condoned on payment of costs of ₹ 2 lacs which shall be paid by the appellant to the respondent on or before August 10, 2019.
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