2025 (1) TMI 1580 - SCH - SEBI

Plea of res judicata for earlier decision - A number of contentions and issues have been raised including the plea that the earlier decision would operate as res judicata and there is no power of review. We are however not inclined to issue notice in the present special leave petition but leave it open to the petitioners to raise all pleas and contentions before the respondent SEBI. The petitioners may also pray that some pleas and contentions may be treated as preliminary issue(s). We clarify that the impugned judgment or the present order do not reflect on the merits of the matter either way. SEBI would not be influenced by any observations in the impugned judgment. The petitioners are granted three weeks time from today to file their reply to the show-cause notice. Recording the aforesaid the special leave petition is dismissed.

Summary

The Supreme Court, through the Hon'ble Chief Justice and Hon'ble Mr. Justice Sanjay Kumar, dismissed the special leave petition without issuing notice. The petitioners had contended that the earlier decision operated as res judicata and that there was no power of review. However, the Court declined to entertain these contentions at this stage and left it open for the petitioners to raise all pleas and contentions before the Securities and Exchange Board of India ("SEBI"), including the possibility of treating some as preliminary issues. The Court explicitly stated that neither the impugned judgment nor the present order reflects on the merits of the case, and that SEBI shall not be influenced by any observations in the impugned judgment. The petitioners were granted three weeks to file their reply to the show-cause notice. The order concludes with dismissal of the special leave petition and disposal of any pending applications.